OpenLegislation

Paragraph 6 I1I2I3I4I5I6F1

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(F21)

P is liable to a penalty under this paragraph, in relation to each tax, each time that P makes a default in relation to a tax year.

(2)

For the purposes of this paragraph, P makes a default F3in relation to a tax year when P fails to make one of the following payments (or to pay an amount comprising two or more of those payments) in full on or before the date on which it becomes due and payable—

(a)

a payment under PAYE regulations F4of tax payable in relation to the tax year;

(b)

a payment of earnings-related contributions within the meaning of the Social Security (Contributions) Regulations 2001 ( S.I. 2001/1004) F5payable in relation to the tax year;

(F6ba)

a payment under regulations under section 105 of FA 2016 of an amount in respect of apprenticeship levy payable in relation to the tax year;

(c)

a payment due under the Income Tax (Construction Industry Scheme) Regulations 2005 ( S.I. 2005/2045) F7payable in relation to the tax year ;

(d)

a repayment in respect of a student loan due under the Education (Student Loans) (Repayments) Regulations 2009 ( S.I. 2009/470) or the Education (Student Loans) (Repayments) Regulations (Northern Ireland) 2000 (S.R. 2000 No. 121) F8and due for the tax year .

(F93)

But where a failure to make one of those payments (or to pay an amount comprising two or more of those payments) would, apart from this sub-paragraph, constitute the first default in relation to a tax year, that failure does not count as a default in relation to that year for the purposes of a penalty under this paragraph.

(4)

The amount of the penalty for a default made in relation to a tax year is determined by reference to—

(a)

the amount of the tax comprised in the default, and

(b)

the number of previous defaults that P has made in relation to the same tax year.

(5)

If the default is P's 1st, 2nd or 3rd default in relation to the tax year, P is liable, at the time of the default, to a penalty of 1% of the amount of tax comprised in the default.

(6)

If the default is P's 4th, 5th or 6th default in relation to the tax year, P is liable, at the time of the default, to a penalty of 2% of the amount of tax comprised in the default.

(7)

If the default is P's 7th, 8th or 9th default in relation to the tax year, P is liable, at the time of the default, to a penalty of 3% of the amount of tax comprised in the default.

(7A)

If the default is P's 10th or subsequent default in relation to the tax year, P is liable, at the time of the default, to a penalty of 4% of the amount of tax comprised in the default.

(8)

For the purposes of this paragraph—

(a)

the amount of a tax comprised in a default is the amount of that tax comprised in the payment which P fails to make;

(F10b)

a previous default counts for the purposes of sub-paragraphs (5) to (7A) even if it is remedied before the time of the default giving rise to the penalty.

(F118A)

Regulations made by the Commissioners for Her Majesty's Revenue and Customs may specify—

(a)

circumstances in which, for the purposes of sub-paragraph (2), a payment of less than the full amount may be treated as a payment in full;

(b)

circumstances in which sub-paragraph (3) is not to apply.

(8B)

Regulations under sub-paragraph (8A) may—

(a)

make different provision for different cases, and

(b)

include incidental, consequential and supplementary provision.

(9)

The Treasury may by order made by statutory instrument make such amendments to sub-paragraph (2) as they think fit in consequence of any amendment, revocation or re-enactment of the regulations mentioned in that sub-paragraph.

Annotations

Textual amendments

F1

Sch. 56 para. 6 substituted (25.1.2011) by Finance (No. 3) Act 2010 (c. 33), s. 27(2), Sch. 11 para. 6; S.I. 2011/132, art. 2(b)

F2

Sch. 56 para. 6(1) substituted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(2)

F3

Words in Sch. 56 para. 6(2) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(a)

F4

Words in Sch. 56 para. 6(2)(a) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(b)

F5

Words in Sch. 56 para. 6(2)(b) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(c)

F6

Sch. 56 para. 6(2)(ba) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 113(14) (with s. 117)

F7

Words in Sch. 56 para. 6(2)(c) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(d)

F8

Words in Sch. 56 para. 6(2)(d) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(e)

F9

Sch. 56 para. 6(3)-(7A) substituted for Sch. 56 para. 6(3)-(7) (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(4)

F10

Sch. 56 para. 6(8)(b) substituted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(5)

F11

Sch. 56 para. 6(8A)(8B) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(6)

Commencement

I1

Sch. 56 para. 6 in force at 6.4.2011 for specified purposes by S.I. 2011/702, art. 3

I2

Sch. 56 para. 6 in force at 17.7.2013 for specified purposes by 2013 c. 29, Sch. 34 para. 12

Sch. 56 para. 6 in force at 1.1.2015 for specified purposes by S.I. 2014/3269, art. 3 (as amended by S.I. 2014/3346, art. 2)

I3

Sch. 56 para. 6 in force at 15.9.2016 for specified purposes by 2016 c. 24, s. 113(18) (with s. 117)

I4

Sch. 56 para. 6 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I5

Sch. 56 para. 6 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 30(5)

I6

Sch. 56 para. 6 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)

Notes on Schedule 56

Modifications

C1

Sch. 56 applied (with modifications) by S.R. 2009/128, reg. 63(3) (as substituted (with effect in accordance with reg. 2 of the amending Rule) by The Education (Student Loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/91), regs. 1, 7(1))

C2

Sch. 56 applied (with modifications) by S.I. 2009/470, reg. 68(3) (as substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2010 (S.I. 2010/661), regs. 1(1), 6)

C3

Sch. 56 applied (with modifications) by S.I. 2001/1004, reg. 67B (as inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 3)

C4

Sch. 56 applied (with modifications) by S.I. 2001/1004, reg. 67A (as inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 3)

C5

Sch. 56 modified (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 39

C6

Sch. 56 applied by S.R. 2009/128, reg. 31 (as substituted (6.4.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2011 (S.R. 2011/137), regs. 1(1), 6 (with reg. 12))

C7

Sch. 56 applied by S.I. 2009/470, reg. 36 (as substituted (6.4.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2011 (S.I. 2011/784), regs. 1(1), 7 (with reg. 12(1)))

C8

Sch. 56 applied (E.) (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 85(3)

C9

Sch. 56 applied (E.) (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 46

C10

Sch. 56: power to amend conferred (22.7.2020) by Finance Act 2020 (c. 14), Sch. 7 para. 5(1)(c)

Notes on Amount of penalty: PAYE and CIS amounts etc.

Textual amendments

F1

Word in Sch. 56 para. 5 cross-heading inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 113(15) (with s. 117)