{
  "url": "https://openlegislation.uk/finance-act-2013/schedule-50/paragraph-12",
  "json_url": "https://openlegislation.uk/finance-act-2013/schedule-50/paragraph-12.json",
  "legislation": "ukpga/2013/29",
  "legislation_title": "Finance Act 2013",
  "legislation_url": "https://openlegislation.uk/finance-act-2013",
  "path": "schedule/50/paragraph/12",
  "kind": "paragraph",
  "number": "12",
  "heading": null,
  "text": "(1) Paragraph 6 (amount of penalty: PAYE and CIS amounts) is amended as follows.\n(2) For sub-paragraph (1) substitute—\n“(1) 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.”\n(3) In sub-paragraph (2)—\n(a) in the opening words, after “default” insert “ in relation to a tax year ”;\n(b) in paragraph (a), at the end insert “ of tax payable in relation to the tax year ”;\n(c) in paragraph (b), at the end insert “ payable in relation to the tax year ”;\n(d) in paragraph (c), at the end insert “ payable in relation to the tax year ”;\n(e) in paragraph (d), at the end insert “ and due for the tax year ”.\n(4) For sub-paragraphs (3) to (7) substitute—\n“(3) 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.\n(4) The amount of the penalty for a default made in relation to a tax year is determined by reference to—\n(a) the amount of the tax comprised in the default, and\n(b) the number of previous defaults that P has made in relation to the same tax year.\n(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.\n(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.\n(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.\n(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.”\n(5) In sub-paragraph (8), for paragraph (b) substitute—\n“(b) 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.”\n(6) After sub-paragraph (8) insert—\n“(8A) Regulations made by the Commissioners for Her Majesty's Revenue and Customs may specify—\n(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;\n(b) circumstances in which sub-paragraph (3) is not to apply.\n(8B) Regulations under sub-paragraph (8A) may—\n(a) make different provision for different cases, and\n(b) include incidental, consequential and supplementary provision.”",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2013/29/schedule/50/paragraph/12",
    "retrieved_at": "2026-10-29T09:08:06.076240+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}