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HMRC internal manual

Compliance Handbook

Penalties for failure to file on time: types of penalties for failure to file on time: occasional returns and returns for periods of 6 months or more: daily penalties after 3 months

This page currently only applies to returns required for income tax, capital gains tax, bank payroll tax, the registered pension schemes legislation, annual tax on enveloped dwellings and stamp duty reserve tax. It does not apply to the Construction Industry Scheme (CIS), see CH62300+.

If the return or other document remains outstanding after 3 months from the penalty date, see CH61160, we can charge daily penalties.

If a person becomes liable to daily penalties, the manner in which the penalties are imposed is dealt with in the operational guidance specific to the head of duty. For some taxes the process for charging daily penalties will be fully automated.

When we decide to charge daily penalties we must

  • give notice in writing that we intend to start charging daily penalties, and
  • tell the person the date when the penalties start.

The date specified in the notice for when the penalties start

  • may be earlier than the date of the notice, but
  • must be at least 3 months after the penalty date.

The penalty is £10 for each day that the return or other document remains outstanding, up to a period of 90 days. The 90 days start on the date specified in the notice.

Once we have given notice that daily penalties will be charged, we must charge the penalties up to, and including, the date on which we receive the return or other document, or the failure is otherwise remedied, or the 90 day period ends, whichever is sooner.

If the daily penalties do not start immediately after 3 months from the penalty date, there may be occasions when daily penalties will be charged more than 6 months from the penalty date. This is when the person is liable to the 6 month further penalty, see CH62140. Daily penalties can still be charged when the person also has the 6 month further penalty charged.

FA09/SCH55/PARA4