AH3902 - Appeals Handbook: Appeals against penalties and surcharge: types of penalty: failure to make a return

Failure to make a return (ITSA)

Under TMA70/S93 and TMA70/S93A the following penalties may be imposed for late filing of a return:

• an initial fixed automatic penalty for late filing
• a second fixed penalty if the failure continues after the end of the period of six months
• daily penalties if the failure continues
• a tax-geared penalty if the failure to file a return continues for more than 12 months after the filing date (For more guidance on tax-geared penalties see EM4580).

All late filing penalties are determined by an officer of the Revenue & Customs but a direction from the Commissioners must be obtained before daily penalties are determined (see EM4570+).

The right of appeal is to the General Commissioners, subject to the appellant’s right to elect for the appeal to be heard by the Special Commissioners.

For more guidance on appeals against ITSA fixed automatic penalties see SAM.

Failure to make a return (CTSA)

Under FA98/SCH18/PARA17 and FA98/SCH18/PARA18 the following penalties may be imposed for late filing of a return:

• fixed automatic penalties for late filing
• a tax-geared penalty for continued failure to deliver return.In most cases COTAX calculates and issues penalty determinations automatically.

All late filing penalties are determined by an officer of the Revenue & Customs and the right of appeal is to the General Commissioners, subject to the appellant’s right to elect for the appeal to be heard by the Special Commissioners.

For more guidance on appeals against CTSA late filing penalties see COTAX.

Failure to make a return (employers and contractors)

Under TMA70/S98A(2) the following penalties may be imposed for late filing of a return:

• fixed automatic penalties for late filing
• a tax-geared penalty for continued failure to deliver return

In addition, fixed and tax-geared penalties for late returns can be imposed under the Social Security (Contributions) Regulations 2001, Reg. 81(2).

More guidance is at ECH21020+.

All of these penalties are determined by an officer of the Revenue & Customs and the right of appeal is to the General Commissioners, subject to the appellant’s right to elect for the appeal to be heard by the Special Commissioners.