RPSM12100020 - Technical Pages: Information Requirements and Administration: Penalty provisions

Penalty provisions

Failure to provide information in accordance with HMRC legislation, as outlined in Part 12 of this manual (RPSM), or the provision of false information can result in penalties. Below is a list giving details of the main penalty provisions relating to the provision of information.

Failure to provide information required by regulations

A penalty in accordance with Section 98 Taxes Management Act 1970. That is a penalty not exceeding £300. Where failure continues, a further penalty not exceeding £60 for each day failure continues.

Fraudulently or negligently provides incorrect information required by regulations

A penalty not exceeding £3000.

Failure to preserve documents as required by regulations

A penalty not exceeding £3000.

Failure to submit a registered pension scheme return

A penalty of £100. Where failure continues, a further penalty not exceeding £60 for each day on which failure continues.

Fraudulently or negligently submitting an incorrect registered pension scheme return and/or associated documents

A penalty not exceeding £3000.

Failure to produce documents and particulars as required by paragraphs 1, 2 or 5 Schedule 36 Finance Act 2008

A penalty of £300. Where failure continues, a further penalty not exceeding £60 for each day on which failure continues.

Carelessly or deliberately producing incorrect documents or information in response to a Notice under paragraph 1,2 or 5 Schedule 36 Finance Act 2008

A penalty not exceeding £3000.

In serious cases where HMRC has reason to believe that failure to comply with a notice means that the tax paid , or likely to be paid, by a person is significantly less then it would otherwise would have been a further tax related penalty can be levied. Such a penalty can only be levied in serious cases where the Upper Tribunal has agreed to such a penalty and has decided on the amount of that extra penalty

Failure to submit an accounting for tax form

Where the number of persons whose particulars should be included in the return is 10 or less, a penalty of £100 for each quarter, or part quarter from which failure continues up to and including the fourth quarter.

Where the number of persons whose particulars should be included in the return is more than 10, a penalty of £100 for each 10 persons or part thereof (for example, 25 persons = £300 penalty) for each quarter or part quarter from which failure continues up to and including the fourth quarter.

Regardless of the number of persons whose particulars should be included in the return, from the fifth quarter, a penalty not exceeding the amount of income tax (excluding scheme sanction charge) for the quarter that the return was not made.

Producing an incorrect accounting for tax return

The penalty due depends on when the accounting for tax return was due to be filed. RPSM12301350 provides guidance on what penalties can be raised for giving incorrect information on an accounting for tax return.