IEIM905320 - Daily Penalties
Where a failure continues after HMRC have charged an initial penalty, HMRC may charge a daily penalty. HMRC would normally charge daily penalties for a period of approximately thirty days starting from the date of issue of the initial penalty. If a failure continues after a first set of daily penalties has been issued, further daily penalties may be issued. Again these will normally cover a period of approximately thirty days starting from the date of issue of the previous set of daily penalties.
Once the return is submitted, or the failure is rectified, HMRC would not normally seek to charge further daily penalties for the intervening period between the issue of the previous penalty and subsequent submission or rectification.
When assessing the penalty, HMRC will consider the frequency of the failure. The first set of daily penalties will be set at a lower level, while subsequent sets of daily penalties will be set at an increased level. Where a failure is followed by subsequent years of compliance, a further failure will attract a lower penalty again.