Have You Made A Deliberate Inaccuracy?
This is HMRC using language in a very unusual way. When HMRC say deliberate inaccuracy what they mean is fraud.
Fraud is simple to understand. You have earned cash that you knew should have been taxed, but you tried to hide that income from HMRC to avoid paying tax.
For example you go to a dentist and the dentist says, “I’ll replace that molar for £800, but if you pay me cash it’s just £500.” Then if the dentist does not declare that £500 as part of his earnings, that’s fraud on the part of the dentist.
So if you are accused of deliberate inaccuracy HMRC are making an extremely serious allegation.
If HMRC start to talk about a deliberate inaccuracy that’s also been concealed, what they mean is that it’s fraud and you’ve tried to block the HMRC investigator from finding out about it.
This now carries a hefty penalty – up to 100 percent!