Beta This part of GOV.UK is being rebuilt – find out what this means

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: 12 month further penalties: Amount of penalties

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

Once you have examined the behaviour of the person, see CH62760, and concluded whether the withholding of information was

  • deliberate and concealed,
  • deliberate but not concealed, or
  • not deliberate,

you charge the 12 month further penalty at the appropriate percentage as follows.

Deliberate and concealed

The penalty is the greater of

  • 100% of any liability to tax which would have been shown in the return in question. See CH63560 for how to quantify a tax-geared penalty when the return has not been filed, and
  • £300.

Note: that we can reduce this penalty if the person made a disclosure, see CH63100+.

Deliberate but not concealed

The penalty is the greater of

  • 70% of any liability to tax which would have been shown in the return in question. See CH63560, for how to quantify a tax-geared penalty when the return has not been filed, and
  • £300.

Note: that we can reduce this penalty if the person made a disclosure, see CH63100+.

Any other case (not deliberate)

Where the person did not deliberately withhold information to prevent us from assessing their liability to tax, the penalty is the greater of

  • 5% of any liability to tax which would have been shown in the return in question. See CH63560 for how to quantify a tax-geared penalty when the return has not been filed, and
  • £300.

Note: that we cannot reduce this penalty if the person made a disclosure, see CH63100+.

Note: that we calculate the penalty as a percentage of the tax liability that would have been shown in the return. A person can demonstrate more than one behaviour regarding information in that return. The penalty is calculated using the highest penalty percentage that is applicable. See CH63500+ for examples of calculations.

The penalties are not reduced by any amount that has been paid towards that liability.

See CH62900+ if the outstanding return relates to a partnership.

FA09/SCH55/PARA6

FA09/SCH55/PARA27