Amount of penalty: occasional returns and annual returns
6.Paragraph 2 details the returns to which an annual or occasional penalty applies.
7.Paragraph 3 provides that a failure to submit a return listed in paragraph 2 results in P becoming liable to a penalty of £100.
8.Paragraph 4(1) sets out the conditions for charging daily penalties where the delay in filing a return is prolonged.
9.Paragraph 4(2) provides for a penalty of £10 for each day that the failure to submit a return continues for a period of up to 90 days beginning with the date specified in the notice under paragraph 4(1).
10.Paragraph 4(3) provides for the date specified in the notice from which the penalty is payable to be earlier than the date on which the notice is given. This is because HMRC will be unaware of certain returns for taxes such as SDLT and IHT until they are received. The date specified in the notice may not be earlier than the end of the period of three months after the filing date.
11.Paragraph 5(1) provides for a penalty to be payable if a return is still outstanding six months after the filing date and there would have been a liability to tax shown in the return.
12.Paragraph 5(2) provides for that penalty to be the greater of £300 or 5 per cent of the liability to tax shown in the return.
13.Paragraph 6(1) provides for a penalty to be payable if a return is still outstanding 12 months after the filing date and there would have been a liability to tax shown in the return.
14.Paragraph 6(2) provides for the details of a penalty to be payable where, by failing to make the return, a person withholds information which would enable or assist HMRC to assess the person’s liability to tax:
15.Paragraph 6(3) states that in any other case, the penalty is to be the greater of £300 or 5 per cent of the liability shown in the return.
