Statutory Pay: employer penalties
Published 28 March 2014
© Crown copyright 2014
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This publication is available at https://www.gov.uk/government/publications/statutory-pay-employer-penalties/statutory-pay-employer-penalties
Penalties are imposed by HM Revenue & Customs (HMRC) or an independent Tribunal if you fail or refuse to operate Statutory Pay correctly. These penalties are civil penalties and not criminal.
Penalties you can be charged
| Situation | Maximum penalty amount |
|---|---|
| failure to give your employee the required information | £300 and £60 for each day the failure continues |
| refusal, repeated refusal or failure to pay SP to your employee | £3,000 |
| payment of an incorrect amount of SP due to either fraud or negligence | £3,000 (£300 for OSPP) |
| refusal to allow access to your records or a failure to comply with a formal information notice | £300 and £60 for each day the failure continues |
| failure to keep records | £3,000 |
| provision of incorrect information or documents, either fraudulently or negligently, in response to a formal information notice | £3,000 (£300 for OSPP) |
| fraudulently or negligently produce incorrect records | £3,000 (£300 for OSPP) |
| provision of incorrect information, either fraudulently or negligently, to your employee | £3,000 (£300 for OSPP) |
| obtaining, either fraudulently or negligently, incorrect funding | £3,000 (£300 for OSPP) |
| fraudulently or negligently make an incorrect statement or declaration to establish entitlement to SP | 3,000 (£300 for OSPP) |
Appealing against a penalty
If you have been charged a penalty you have the right of appeal in all cases. You must appeal within 30 days of the issue of the penalty.
Appeals against penalties for non payment or failing to keep records are made to HMRC and must specify the grounds for appeal. These appeals may be settled by agreement and where agreement can’t be reached, you can appeal to the First Tier Tribunal.
You may withdraw the appeal, but this will only be accepted if you pay the penalty in full.
You can appeal to the Upper Tier Tribunal against penalties imposed by a First Tier Tribunal eg against penalties for failure to provide information or refusing access to records.
The outcome of any appeal could see the penalty upheld, varied or dismissed.