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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: miscellaneous charges: statutory payments penalties

Overview

Statutory Payment Penalties occur when someone does not comply with or fraudulently or negligently contravenes the regulations in respect of Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Maternity Pay (SMP) or Statutory Sick Pay (SSP). A list of circumstances where a penalty can apply can be found at SPM90110.

Penalties can be:

  • determined by an officer authorised by the Board (notified on form 394). Penalty Determinations may be made in any Employer Compliance Office. There are also Statutory Payments Disputes teams in Nottingham and Londonderry who may be involved in this work
  • imposed by the General Commissioners (notified on form 305) where an authorised officer commences penalty proceedings.

Charges are accounted for on SAFE which will make the initial applications for payment. Where payment is not made the cases will be referred to the appropriate debt technical office for enforcement action on the SAFE Local Action worklist.

Due date for payment

394 penalty determinations are due 30 days from the date of issue of the determination notice.

305 penalties are due 30 days from the issue of the penalty notice.

Interest

Interest is chargeable on late payment. SAFE will automatically calculate any interest payable, but should it be necessary to do a clerical calculation you should use IRIS function SAIN01.

Repayment supplement

Repayment supplement is not payable on any amount repaid in respect of these penalties.

Application for payment

SAFE will issue applications for payment as appropriate.

Referral to debt technical office

Where payment is not made the cases will be referred to the appropriate debt technical office for enforcement action on the SAFE Local Action worklist.

Appeals

Appeals should be referred to the office that issued the determination.

Debt technical office action

On receipt of the SAFE work item, commence pre-enforcement procedures, see DMBM605000 onwards.

Enforcement - England, Wales and Northern Ireland

Penalty determinations and penalties awarded by the Commissioners can be enforced by any of the usual methods. Please note that they are not suitable for the County Court Bulk Centre.

Description for proceedings

Statutory Paternity Pay & Statutory Adoption Pay

In England and Wales the penalty should be described in your proceedings as “Penalty imposed under the Employment Act 2002”.

In Northern Ireland the penalty should be described as “Penalty imposed under the Employment (Northern Ireland) Order 2002”.

Statutory Sick Pay & Statutory Maternity Pay

In England and Wales the penalty should be described in your proceedings as “Penalty imposed under the Social Security Administration Act 1992 as amended by the National Insurance Contributions and Statutory Payments Act 2004”.

In Northern Ireland the penalty should be described in your proceedings as “Penalty imposed under the Social Security Administration (Northern Ireland) Act 1992 as amended by the National Insurance Contributions and Statutory Payments - Act 2004”.

Particulars of Claim

Use the information above to adapt the particulars of claim examples in the DMB Guidance Gateway.

Enforcement - Scotland

Summary Warrant

Describe the debt as shown above for England and Wales.

Ordinary Cause/Summary Proceedings

For details of claim of Condescendence 2 you should find the style in the disk of styles provided by Recovery Group Edinburgh.

Certificates of Debt

Certificates of debt are described at DMBM615420.