HMRC has introduced legislation to standardise powers, deterrents and safeguards across the UK tax regime. These changes follow consultation with agents, customers, representative bodies, and staff. Over time they are intended to make the tax system more consistent.

Every year HMRC carries out compliance checks to see if the correct tax has been paid. From 1 April 2010 there is one system across many taxes:

• To obtain information about tax
• To inspect business records
• To determine the time taken to make tax claims
• To determine the time HMRC have to make tax assessments

New penalties have also been introduced with effect from 1 April 2010 which includes an inaccuracy penalty and a failure to notify penalty.

From 1 April 2010 HMRC can publish the details of taxpayers who are penalised for deliberately evading more than £25,000 of tax.

With regard to PAYE/National Insurance Contributions (NICs), from 6 April 2010 new penalties will apply which will replace an existing penalty under the Mandatory Electronic Payment (MEP) scheme.

Taxpayers who disagree with the imposition of a penalty by HMRC can appeal.

Full details on the new compliance checks and penalties are available here.