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. The exception to this is the obligation for Landfill Tax under Para 32 Schedule 12 Finance Act 2018 to tell HMRC before 1 May 2018 about a disposal of material that was made, knowingly caused, or knowingly permitted before 1 April 2018, where the material remains at an unauthorised waste site on or after 1 April 2018. This comes into effect from 1 May 2018.
*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.