Paragraph 23A F1

(1)

This paragraph applies if—

(a)

a penalty under paragraph 23 is assessed in respect of a person's failure to comply with a file access notice,

(b)

the failure continues for more than 30 days beginning with the date on which notification of that assessment was issued, and

(c)

HMRC has (at any time) told the person that an application may be made under this paragraph for an increased daily penalty to be assessable.

(2)

An officer of Revenue and Customs may make an application to the tribunal for the person to be liable to an increased daily penalty.

(3)

If the tribunal decides that the person should be liable to an increased daily penalty—

(a)

the tribunal must determine the day from which the increased daily penalty is to apply and the maximum amount of that penalty (“the new maximum amount”), and

(b)

from that day, paragraph 23 has effect in the person's case as if the new maximum amount were substituted for the amount for the time being specified there.

(4)

The new maximum amount may not be more than £1,000.

(5)

In determining the new maximum amount the tribunal must have regard to—

(a)

the likely cost to the person of complying with the notice,

(b)

any benefits to the person of not complying with it, and

(c)

any benefits to anyone else resulting from the person's non-compliance.

(6)

If the tribunal makes a determination under this paragraph, HMRC must notify the person.

(7)

The notification must specify the new maximum amount and the day from which it applies.

Annotations

Textual amendments

F1: Sch. 38 para. 23A and cross-heading inserted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 14

Notes on Schedule 38

Textual amendments

F1: Sch. 38 heading substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 2

Modifications

C1: Sch. 38 applied by S.I. 2009/470, reg. 33(1) (as substituted (6.4.2013) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2013 (S.I. 2013/607), regs. 1(1), 9)
C2: Sch. 38 applied (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), 24(2)
C3: Sch. 38 applied (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), 43(1)
C4: Sch. 38 applied (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 41 (as amended (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 35)

Notes on Part 3

Textual amendments

F1: Word in Sch. 38 Pt. 3 heading substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 7

Modifications

C1: Sch. 38 Pt. 3 applied (N.I.) by 1992 c. 8, s. 104ZA(2A) (as inserted (1.4.2013) by Finance Act 2012 (c. 14), Sch. 38 para. 57; S.I. 2013/279, art. 2)
C2: Sch. 38 Pt. 3 applied (E.W.S.) by 1992 c. 5, s. 110ZA(2A) (as inserted (1.4.2013) by Finance Act 2012 (c. 14), Sch. 38 para. 56; S.I. 2013/279, art. 2)