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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
, see all updates

Penalties for failure to file on time: Types of penalties for failure to file on time: Returns for periods between 2 and 6 months: Initial and subsequent fixed penalties

This page currently only applies to returns required for machine games duty (MGD).

A person is liable to an initial fixed penalty of £100 when they fail to deliver a return or document by the filing date, see CH61140.

The person becomes liable to the penalty on the penalty date, see CH61160. The penalty date is the day after the filing date. It is the date on which a person first becomes liable to a penalty for failing to file a return, see CH61180.

A penalty period begins on the penalty date and runs for a period of 12 months from the filing date. If the person fails to submit further returns during that penalty period, the penalty period is extended so that it ends 12 months after the filing date for that subsequent return. The amount of the subsequent fixed penalty also increases with each failure to submit the return by the filing date.

The subsequent fixed penalty for the

  • Second failure is £200
  • third failure is £300, and
  • fourth, and subsequent failures, is £400.

The larger subsequent fixed penalties are still incurred for failing to file later returns on time even if the first return is filed when the subsequent failure occurs.

Example

Cavendish Limited was due to file its MGD return for the 3 months ended 30 April 2013 on 30 May 2013. Cavendish Limited did not file the return until 25 June 2013. Cavendish Limited is liable to an initial fixed penalty of £100 on the penalty date of 31 May 2013. The penalty period ends 30 May 2014.

Cavendish Limited was due to file its MGD return for the 3 months ended 31 July 2013 on 30 August 2013. Cavendish Limited did not file the return until 11 September 2013. Cavendish Limited is liable to a subsequent fixed penalty of £200 on the penalty date of 31 August 2013. This failure extends the end date of the penalty period to 30 August 2014. The larger penalty is incurred even though the return ended 30 April 2013 was filed at the time this subsequent default occurred.

Cavendish Limited was due to file its MGD return for the 3 months ended 30 April 2014 on 30 May 2014. Cavendish Limited did not file the return until 1 July 2014. Cavendish Limited is liable to a subsequent fixed penalty of £300 on the penalty date of 31 May 2014. This default is within the existing penalty period that ends 30 August 2014, but this default also extends the penalty period to 30 May 2015.

FA09/SCH55/PARA3