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HMRC internal manual

Excise Civil Penalties Manual

Types of penalties: Geared penalties

A geared penalty is based on the amount of duty arrears involved, set as a percentage in law of (5%).

However if the resulting amount is less than £250, the penalty to be assessed is £250. Finance Act 1994 Section 9(2)(a) refers to this provision.

What attracts a geared penalty?

Anyone who fails to pay duty by the due date, renders themselves liable to a penalty under Section 9(2)(a) of the Finance Act 1994 (subject to reasonable excuse), as provided for by subsection (4)(a) of the same Act.