CH62710 - Penalties for failure to file on time: types of penalties for failure to file on time: returns for periods between 2 and 6 months: overview
This page only applies to returns required for Machines Games Duty (MGD), Soft Drinks Industry Levy (SDIL) and Plastic Packaging Tax (PPT).
This chapter only applies to returns periods that are more than 2 months but less than 6 months, and so does not include 6 monthly or 2 monthly returns.
A person is liable to a penalty when they fail to file their return or other document by the filing date. The penalty date is the day after the filing date.
A penalty period begins on the penalty date and runs for a period of 12 months from the filing date. If the person fails to submit further returns during that penalty period, the penalty period is extended so that it ends 12 months after the filing date for that subsequent return. The amount of the penalty also increases with each subsequent default.
They become liable to further penalties where their return remains outstanding for 6 and 12 months from the penalty date. After 12 months from the penalty date, the amount of penalty also varies depending on the reason for the failure and whether the information withheld would enable or assist HMRC assessing the person’s correct tax liability.
The penalties are summarised in the table.
| Type of penalty | When liable to penalty | Amount of penalty | Guidance |
|---|---|---|---|
| Initial fixed penalty | On the penalty date | Fixed £100 (refer to note below) | CH62720 |
| 6 months further penalty | 6 months after the penalty date | Greater of 5% of the tax liability that would have been shown in the return, and £300 | CH62730 |
| 12 months further penalty | 12 months after the penalty date | If withholding of information is deliberate and concealed, greater of 100% of the liability that would have shown on the return, and £300. | CH62740 |
| 12 months further penalty | 12 months after the penalty date | If withholding of information is deliberate but not concealed, greater of 70% of the liability that would have shown in the return, and £300. | CH62740 |
| 12 months further penalty | 12 months after the penalty date | If withholding of information is not deliberate, greater of 5% of the liability that would have shown in the return, and £300. | CH62740 |
Note: that if this default is not the first failure to file within the penalty period, see CH62720, then the amount of fixed penalty is
- £200 for the second failure
- £300 for the third failure, and
- £400 for the fourth and subsequent failure.
See the diagram (word 29kb) of the penalties for returns between 2 and 6 months.
Note: that after a return or other document is outstanding for 12 months, a person can demonstrate more than one behaviour regarding information in that return. The penalty is calculated using the highest penalty percentage that is applicable, see CH62760.
The person can receive a reduction to the 12 month 100% or 70% penalty if they make a disclosure, see CH63100+. But, we cannot reduce the 12 month 5% penalty for a disclosure.
FA09/SCH55
FA12/SCH24
FA17/Section 52