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HMRC internal manual

Statutory Payments Manual

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HM Revenue & Customs
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Penalties - employer failure to keep statutory payment records

SMP and SSP

Where an employer fails to keep SSP or SMP records in accordance with regulations under Section 130 or 132 of SSAA1992 or Section 122 or 124 of SSA(NI)A1992 they are liable to a penalty.

The legislation that allows HMRC to penalise employers who fail to keep the required SSP or SMP records is Section 113A of the Social Security Administration Act 1992(SSAA 1192). The penalty for failing to keep records is a maximum of £3,000, which is determined by an authorised officer. No penalty may be determined after the failure has been made good.

Employer Compliance Caseworkers are most likely to come across employers who have failed to keep adequate statutory payment records as part of their core checks. A warning letter must be issued for a first offence. If a written warning has been given previously follow the guidance in EM4650 for penalties under S12B(5) of TMA1970. 

ASPP, SPP, SAP and ShPP

Where an employer fails to keep ASPP, SPP, SAP or ShPP records in accordance with regulations under Section 8 of EA2002 or Article 9 of E(NI)O2002 they are liable to a penalty.

The legislation that provides for HMRC to penalise employers who fail to keep the required ASPP, SPP, SAP or ShPP records is:

  • Section 11(3) of the Employment Act 2002(EA2002) 
  • Article 12(3) of the Employment (Northern Ireland) Order 2002 (E(NI)O2002).