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HMRC internal manual

Statutory Payments Manual

Penalties - employer refuses access to their statutory payment records

Where the employer fails to produce records required by regulations, they are liable to a penalty.

The penalties for an employer who fails to produce records are:

  • a sum not exceeding £300 for each failure (which is determined by the First-tier Tribunal) and
  • if the failure continues, after an initial penalty has been determined by the First-tier Tribunal, this will result in a continuing penalty not exceeding £60 per day which is determined by an authorised officer.

Sections 11(1)(a) and 11(2) of the Employment Act 2002

Articles 12(1)(a) and 12(2) of the Employment (Northern Ireland) Order 2002

Section 9 of the National Insurance and Statutory Payments Act 2004 (NICs & SPA 2004)

Section 10 of the National Insurance and Statutory Payments Act 2004 (NICs & SPA 2004) 

Continuing daily penalties cannot be determined after the failure has been made good.

These formal penalty proceedings should only be used as a last resort, after all reasonable efforts have been made to persuade the employer to comply. See the Compliance Handbook CH25000 for more information.

Where, despite all reasonable efforts, it is thought necessary to invoke these proceedings, the Intervention Team Manager should contact Tax Administration and Advice Team.