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Hi there! I have a difficulty understanding the following question and how it should be solved. Any help would be greatly appreciated!!
Alexander is a sole trader. He files his tax return for the tax year 2021/22 on 10 January 2023. The return shows his trading income to be EUR60,000. In fact, due to carelessness, his trading income should have been stated to be EUR68,000. Alexander has no other income.
Compute the max penalty that could be charged by the HMRC on Alexander for his error.
P.S I understand that for careless we need to apply 30% maximum penalty. Would that need to be calculated as 68,000-60,000=8,000 x 30% or?
Hi
Where did you get the question from as you are attempting a UK tax papaer and we never deal in Euro’sHello,
I took the question from the workbook of BPP for FY 2021. Originally the currency is GBR, i just took EUR by accident.
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