20(1)A company or partnership that is required by paragraph 8(2)(a) to give a notification to HMRC is liable to a penalty if it fails to give the notification in accordance with that paragraph.
(2)The amount of the penalty under sub-paragraph (1) is—
(a)for a first failure in respect of a relevant tax, £5,000;
(b)for a second failure in respect of a relevant tax, £25,000;
(c)for a further failure in respect of a relevant tax, £50,000.
(3)A company or partnership that is required by paragraph 8(2)(b) to give a notification to HMRC is liable to a penalty if it fails to give the notification in accordance with that paragraph.
(4)The amount of the penalty under sub-paragraph (3) is £5,000.
21(1)This paragraph applies for determining whether a company’s or partnership’s failure to give a notification in accordance with paragraph 8(2)(a) is, in respect of a relevant tax—
(a)a first failure,
(b)a second failure, or
(c)a further failure.
(2)The failure is a first failure in respect of a relevant tax if, in the applicable three year period, the company or partnership has not been assessed to a penalty under paragraph 20(1) in respect of the same relevant tax.
(3)The failure is a second failure in respect of a relevant tax if, in the applicable three year period, the company or partnership—
(a)has been assessed to a penalty under paragraph 20(1) for a first failure in respect of the same relevant tax, but
(b)has not been assessed to a penalty under paragraph 20(1) for a second or further failure in respect of the same relevant tax.
(4)The failure is a further failure in respect of a relevant tax if, in the applicable three year period, the company or partnership has been assessed to a penalty under paragraph 20(1) for a second or further failure in respect of the same relevant tax.
(5)The “applicable three year period” is the period comprising the three financial years of the company or partnership immediately preceding the financial year for which the relevant return, in relation to which the notification was required, was delivered to HMRC.
22(1)Liability to a penalty under paragraph 20 does not arise if the person who would otherwise be liable to the penalty satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that the person had a reasonable excuse for that failure.
(2)For the purposes of this paragraph—
(a)an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person’s control;
(b)where the person relies on another person to do anything, that cannot be a reasonable excuse unless the first person took reasonable care to avoid the failure;
(c)where the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.
23(1)Where a person becomes liable to a penalty under paragraph 20—
(a)HMRC may assess the penalty, and
(b)if they do so, HMRC must notify the person of the assessment.
(2)An assessment of a penalty under paragraph 20 may not be made—
(a)more than 6 months after the failure to give the notification in accordance with paragraph 8(2)(a) or (b) (as the case may be) first comes to the attention of an officer of Revenue and Customs, or
(b)more than 6 years after the end of the financial year in which the notification should have been given.
24(1)A person may appeal against—
(a)a decision of HMRC that a penalty under paragraph 20 is payable by the person, or
(b)a decision of HMRC as to the amount of a penalty under paragraph 20.
(2)Notice of an appeal must be given—
(a)in writing, and
(b)before the end of the period of 30 days beginning with the date on which the notification by HMRC under paragraph 23(1)(b) was issued.
(3)Notice of an appeal must state the grounds of appeal.
(4)On an appeal under sub-paragraph (1)(a) that is notified to the tribunal, the tribunal may confirm or cancel the decision.
(5)On an appeal under sub-paragraph (1)(b) that is notified to the tribunal, the tribunal may—
(a)affirm HMRC’s decision, or
(b)substitute for that decision another decision that HMRC had power to make.
(6)Subject to this paragraph, and paragraph 25, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this Schedule as they have effect in relation to an appeal against an assessment to income tax.
25(1)A penalty under paragraph 20 must be paid—
(a)before the end of the period of 30 days beginning with the date on which the notification by HMRC under paragraph 23(1)(b) was issued, or
(b)if a notice of appeal is given, before the end of the period of 30 days beginning with the day on which the appeal is determined or withdrawn.
(2)A penalty under paragraph 20 may be enforced—
(a)where the penalty is payable by a company, as if it were corporation tax charged in an assessment and due and payable;
(b)where the penalty is payable by a partnership, as if it were income tax charged in an assessment and due and payable.
26(1)If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sum for the time being specified in any of the following provisions such other sum as appears to them to be justified by the change—
(a)paragraph (a), (b) or (c) of paragraph 20(2) (amount of a first, second or further penalty under paragraph 20(1));
(b)paragraph 20(4) (amount of penalty under paragraph 20(3)).
(2)In sub-paragraph (1) “relevant date” means—
(a)the date on which this Act is passed, and
(b)each date on which the power conferred by sub-paragraph (1) has been exercised in relation to the amount in question.
(3)Regulations under this paragraph do not apply to a failure that occurs in respect of a relevant return that is required to be made before the date on which the regulations come into force.
27In this Part, “tribunal” means the First-tier Tribunal.