MTT55410 - Administration: Compliance: Penalties: Overview

There are five types of penalties that may be raised in relation to MTT:

  • failure to register (FA08/SCH41)
  • penalties relating to the information return (FA23/SCH14/PART11/Para 42)
  • penalties relating to the self-assessment return (FA23/SCH14/PART11/Para 43)
  • penalties for inaccuracies (FA07/SCH24)
  • penalties relating to record-keeping (FA23/SCH14/PART11/Para 46)

These penalties are explained in detail in the following pages in this section.

The filing member of the group is responsible for the obligations that fall upon a group and is consequently liable for the penalties that may be raised in relation to MTT.

A penalty of any type can be appealed. See MTT55500+ for further information about appeals.

Where more than one penalty is charged in respect of a single accounting period, the penalty amount will be reduced so that ultimately the total penalty percentage charged does not exceed the highest percentage that is chargeable. See CH84970.

This is set out in part 11, schedule 14 to Finance (No.2) Act 2023.

Domestic Top-up Tax

The MTT penalty regime is replicated for DTT purposes. See MTT50210 for further guidance.