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HMRC internal manual

Compliance Handbook

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HM Revenue & Customs
Updated
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Penalties for Failure to Notify: In what circumstances is a penalty payable: Commencement date

The new failure to notify penalty regime applies where the obligation to notify arises on or after 1 April 2010.

This means the first direct tax periods for which the penalties will apply are as follows.

Tax First direct tax period
Income Tax and Class 4 NIC* 2009-10
Capital Gains Tax 2009-10
Corporation Tax Accounting periods ending on or after 31 March 2010
Diverted Profits Tax Accounting periods ending on or after 31 March 2015

For indirect taxes, the new penalty regime applies where the obligation to notify arises on or after 1 April 2010.

*Class 2 NIC failures are not covered by Schedule 41 but are subject to a similar penalty under Regulation 87A to 87G of the Social Security (Contributions) Regulations 2001. For further guidance, see NIM23008.