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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Penalties for failure to file on time: Types of penalties for failure to file on time: Returns for periods between 2 and 6 months: 6 month further penalties

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

A person is liable to a 6 month further penalty if the return or other document remains outstanding 6 months after the penalty date, see CH61160.

Example

Somerset Group was due to file its MGD return for the 3 months ended 31 October 2013 on 30 November 2013. Somerset Group incurred an initial fixed penalty on 1 December 2013.

The return is still not filed 6 months after the penalty date and so Somerset Group is liable to a 6 month further penalty on 1 June 2014.

The penalty is greater of

  • 5% of the liability to tax that would have been shown in the return, and
  • £300.

See CH63560 for how to quantify a tax-geared penalty when the return has not been filed.

Note: that the 5% penalty is calculated on the liability that would have been shown in the return if it had been filed on time, and is not reduced by any amount that has been paid towards that liability.

The 6 month further penalty differs from the 12 month further penalty, see CH62740+, because the 6 month further penalty

  • has no reduction for disclosure, and
  • does not depend on the type of behaviour.

See CH62900 if the outstanding return relates to a partnership.

FA09/SCH55/PARA5