IFM41250 - Administrative requirements: penalties

FA22/SCH2/PARA24(5) to (6)

If a QAHC fails to make a valid QAHC information return to HMRC by the required deadline (see IFM41230), a £300 fixed rate penalty may be charged.

HMRC may assess this penalty up to six years from the period beginning with the date on which the QAHC became liable to the penalty.

Example

A QAHC has an accounting period end date of 31 March 2023, so the deadline for making a QAHC information return under PARA 24 is therefore 31 March 2024 (twelve months later).

If the QAHC does not meet this deadline, the QAHC is liable for a fixed rate £300 penalty from 1 April 2024.

HMRC has until 1 April 2030 to assess this penalty.

Right of appeal

A QAHC has the right to appeal against this penalty if the company believes it has a reasonable excuse for not making the return by the deadline.

Appeals should be sent to HMRC within 30 days of the penalty notice being issued.

The appeal can be sent to HMRC’s QAHC team (see IFM41210 for contact details).

For further information about the appeals process, see CH64560.

If HMRC reject the appeal, a further appeal can be made to the tribunal (see ARTG2410).

Inaccurate information

There is no penalty for the provision of inaccurate information by a QAHC within the QAHC information return but HMRC may perform compliance checks to assess the accuracy of any information provided.

If the QAHC anticipates that it will be unable to provide some or all of the information required before the deadline, the QAHC should contact HMRC’s QAHC team (see IFM41210 for contact details) with a full explanation before the deadline.