COM100090 - Penalties: late delivery of returns: period of determination

Late filing penalties can be

• Flat-rate

• Incurred under Para 17(1) Schedule 18 FA 1998 for CTSA return periods, in set amounts
• Incurred under S94(1) TMA 1970 for CT Pay and File return periods, in set amounts

Or

• Tax-related

• Incurred under Para 18(1) Schedule 18 FA 1998 for CTSA return periods in amounts that are based on the tax liability for the return period and the amount of that liability that remains unpaid 18 months after the end of the AP

Note: Exceptionally, for CTSA return periods, if the filing date for the return is more than 18 months after the end of the AP, then the penalty is based upon the tax unpaid at that later date. No such extension applies to CT Pay and File periods

• Incurred under S94(6) TMA 1970 in amounts that are based on the tax liability for the return period (Word 28KB) and the amount of that liability that remains unpaid 18 months after the end of the AP

These penalties are chargeable in relation to an AP, but a notice to deliver (Word 29KB) can cover more than one AP, so that two or more penalties can be chargeable in respect of one notice.

COTAX

• Records occurrences of penalty liability for each specified period by reference to the return(s) believed to be due in response to the notice to deliver
• Brings together into a single penalty determination all the flat-rate, or all the tax-related penalties incurred for failure to make the returns required by a single notice to deliver
• Will automatically issue determinations, where appropriate (For further information see section Penalty Determinations (COM101000) in this business area)

But

• Will not mix flat-rate and tax-related penalties in the same determination

It follows that when there is more than one return period in a specified period, one determination is made for each class of penalty incurred. However, recovery is based on each separate penalty incurred for each return period within the overall specified period.

Example 1 (Word 38KB) illustrates the point.

Once you have charged a penalty by a determination you can only amend it under S100(6) TMA 1970, or on appeal.

If there has not been an appeal, you may wish to make a further determination if you discover that a determination is insufficient.

Where COTAX has not already done so, you make main or further determinations for both flat-rate, and tax-related penalties using Function PPEN (Prepare Penalty Determination).

For more information see section ‘Penalty Determinations’ in this business area.

For a list of forms relevant to this subject, see COM100011.

For a list of functions to use in particular situations, see COM100012.

For legislation applying to this subject, see COM100013.