TFC60500 - Penalties: penalties for making prohibited payments

Childcare Payments Act 2014, section 45

HMRC may impose penalties on a person who makes prohibited payments from a childcare account, as set out in section 20 of the Act, or permits such payments to be made.

Childcare Payments Act 2014, section 45(1)

If HMRC has given a person a warning notice, and at any time during which the warning notice has effect, the person causes or permits a prohibited payment to be made from a childcare account held by them, and they are notified an assessment under section 41 of the Act (see TFC55100 - assessment and enforcement of recoverable top-up payments) in respect of the prohibited payment, the person is liable to pay a penalty.

Childcare Payments Act 2014, section 45(2)

HMRC may give a person a warning notice if they have caused or permitted a prohibited payment to be made from their childcare account and have been notified of an assessment under section 41 of the Act in respect of that prohibited payment. That assessment must also have become final.

Childcare Payments Act 2014, section 45(7)

An assessment becomes final when it can no longer be reviewed or appealed against.

Childcare Payments Act 2014, section 45(3)

A warning notice is a notice which has effect for a period of 4 years beginning with the day on which the notice is given and states that the person will be liable to a penalty if at any time during the period of 4 years beginning with the day on which the notice is given, the person causes or permits a prohibited payment to be made from a childcare account held by the person.

Childcare Payments Act 2014, section 45(4)

A warning notice given to a person in respect of prohibited payments ceases to have effect if the person is notified of a penalty under this section.

Childcare Payments Act 2014, section 45(5)

HMRC may issue a new warning notice in respect of the prohibited payment to which the penalty applies thus triggering the start of another 4-year TFC period and enabling HMRC to issue a further penalty if subsequent prohibited payments are made within this period.