CH71120 - Penalties for Failure to Notify: In what circumstances is a penalty payable: Commencement date
The new failure to notify penalty regime applies where the obligation to notify arises on or after 1 April 2010.
This means the first direct tax periods for which the penalties will apply are as follows.
| Tax | First direct tax period |
|---|---|
| Income Tax and Class 4 NIC | 2009-10 |
| Class 2 NIC | 2015-16* |
| Capital Gains Tax | 2009-10 |
| Corporation Tax | Accounting periods ending on or after 31 March 2010 |
| Diverted Profits Tax | Accounting periods ending on or after 31 March 2015 |
| Digital Services Tax | Accounting periods ending on or after 31 March 2021 |
For indirect taxes, the new penalty regime applies where the obligation to notify arises on or after 1 April 2010.
The exceptions to this are
- the obligation for Landfill Tax under Para 32 Schedule 12 Finance Act 2018 to tell HMRC before 1 May 2018 about a disposal of material that was made, knowingly caused, or knowingly permitted before 1 April 2018, where the material remains at an unauthorised waste site on or after 1 April 2018. This comes into effect from 1 May 2018
- the obligation for the Soft Drinks Industry Levy under Section 44 Finance Act 2017 to give notice of liability to be registered. This comes into effect from 6 April 2018.
*Class 2 NIC failures before 2015-16 were not covered by Schedule 41 but were subject to a similar penalty under Regulation 87A to 87G of the Social Security (Contributions) Regulations 2001. For further guidance, see NIM23008.