RPSM04301090 - Scheme Administrator Pages: Taxation: Tax and penalties payable by the administrator: Determination and payment of penalties

Determination and payment of penalties

Determination of penalties - Initial Penalty in respect of Event Reports

The First Tier Tribunal will determine the initial penalty of up to £300 in respect of the event reports listed in RPSM12301010.

Determination of penalties - Other penalties

With the exception of the initial £300 penalty in respect of event reports an officer of HMRC who has been authorised by HMRC to make penalty determinations will determine all other penalties to which the scheme administrator is liable. The authorised officer will issue a determination imposing a penalty which will

• state the date on which it is issued
• state the time within which an appeal against the determination may be made, and
• set the amount of the penalty at the level that the issuing officer considers to be appropriate.

If there is no appeal then the penalty will be due and payable on the thirtieth date after the issuing of the determination, counting the date on which it was issued as the first day.

If there is an appeal against the liability to the penalty or against the amount, then the matter may be decided by the First Tier Tribunal. More details about the appeal and review process are set out in RPSM04302060 and RPSM12102000 onwards.

Payment of Penalties

[Section 100A Taxes Management Act 1970][Section 100C Taxes Management Act 1970]

Once a penalty on the administrator has become due and payable it is treated as it were tax charged in an assessment. Therefore the same arrangements that apply to the payment of tax also apply to the payment of penalties. Also interest in respect of unpaid penalties will be the same amount of interest that would apply if the penalty was an amount of tax charged in an assessment.

Details about the payment of tax and interest on unpaid tax, which also apply to penalties, are set out in RPSM04301060.