Finance Act 2009 (c. 10)

SCHEDULES

SCHEDULE 56 U.K. Penalty for failure to make payments on time

Modifications etc. (not altering text)

C1 Sch. 56 applied (with modifications) by SR 2009/128, reg 63(3) (as substituted (with effect in accordance with reg. 2 of the amending Rule) by The Education (Student Loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2010 (S.R. 2010/91), regs. 1, 7(1))

C2 Sch. 56 applied (with modifications) by SI 2009/470 reg. 68(3) (as substituted (with application in accordance with reg. 1(2) of the amending S.I.) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2010 (S.I. 2010/661), regs. 1(1), 6)

C3 Sch. 56 applied (with modifications) by SI 2001/1004 reg. 67B (as inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 3)

C4 Sch. 56 applied (with modifications) by SI 2001/1004 reg. 67A (as inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2010 (S.I. 2010/721), regs. 1(2), 3)

C5 Sch. 56 modified (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 39

C6 Sch. 56 applied by SR 2009/128, reg. 31 (as substituted (6.4.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations (Northern Ireland) 2011 (S.R. 2011/137), regs. 1(1), 6 (with reg. 12))

C7 Sch. 56 applied by S.I. 2009/470 reg. 36 (as substituted (6.4.2011) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2011 (S.I. 2011/784), regs. 1(1), 7 (with reg. 12(1)))

C8 Sch. 56 applied (E.) (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 85(3)

C9 Sch. 56 applied (E.) (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 46

C10 Sch. 56: power to amend conferred (22.7.2020) by Finance Act 2020 (c. 14), Sch. 7 para. 5(1)(c)

[F1 Amount of penalty: amounts in respect of periods of between 2 and 6 months U.K.

Textual Amendments

F1 Sch. 56 paras. 8A-8J and cross-headings inserted (1.4.2022 for the purposes of plastic packaging tax) by Finance (No. 3) Act 2010 (c. 33), s. 27(2), Sch. 11 para. 7 (as amended by 2014 c. 26, Sch. 22 para. 22(6), which amending provision was repealed by 2018 c. 22, s. 57(3), Sch. 8 para. 132(l) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)); 2021 c. 26, Sch. 15 para. 5(2); 2021 c. 26, Sch. 15 para. 5(2)

8A (1) Paragraphs 8B to 8E apply in the case of a payment of tax falling within any of items [F2 6A,] 6C [F3 and 11A to][F3 , 11A and 11B to] [F4 11M] [F4 11N] in the Table which relates to a period of less than 6 months but more than 2 months. U.K.

[F5 (2) But those paragraphs do not apply in the case of a payment mentioned in paragraph 3(1)(d).]

[F6 (3) Paragraph 8K sets out how payments on account of VAT (item 6A) are to be treated for the purposes of paragraphs 8B to 8E.]

Textual Amendments

F2 Word in Sch. 56 para. 8A(1) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 40(5)(a); S.I. 2024/440, reg. 2

F3 Words in Sch. 56 para. 8A(1) substituted (in relation to amounts of plastic packaging tax payable in respect of accounting periods commencing on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), s. 338(1)(b)(2)

F4 Word in Sch. 56 para. 8A(1) substituted (in relation to the playing of machine games on or after 1.2.2013) by Finance Act 2012 (c. 14), Sch. 24 paras. 34(d), 66(2)

F5 Sch. 56 para. 8A(2) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 40(5)(b); S.I. 2024/440, reg. 2

F6 Sch. 56 para. 8A(3) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 40(5)(b); S.I. 2024/440, reg. 2

8B (1) A penalty period begins to run on the penalty date for the payment of tax. U.K.

(2) The penalty period ends with the day 12 months after the date specified in or for the purposes of column 4 for the payment, unless it is extended under paragraph 8C(2)(c) or 8H(2)(c).

8C (1) This paragraph applies if— U.K.

(a) a penalty period has begun under paragraph 8B or 8G because P has failed to make a payment (“payment A”), and

(b) before the end of the period, P fails to make another payment (“payment B”) falling within the same item in the Table as payment A.

(2) In such a case—

(a) paragraph 8B(1) does not apply to the failure to make payment B,

(b) P is liable to a penalty under this paragraph for that failure, and

(c) the penalty period that has begun is extended so that it ends with the day 12 months after the date specified in or for the purposes of column 4 for payment B.

(3) The amount of the penalty under this paragraph is determined by reference to the number of defaults that P has made during the penalty period.

(4) If the default is P’s first default during the penalty period, P is liable, at the time of the default, to a penalty of 2% of the amount of the default.

(5) If the default is P’s second default during the penalty period, P is liable, at the time of the default, to a penalty of 3% of the amount of the default.

(6) If the default is P’s third or a subsequent default during the penalty period, P is liable, at the time of the default, to a penalty of 4% of the amount of the default.

(7) For the purposes of this paragraph—

(a) P makes a default when P fails to pay an amount of tax in full on or before the date on which it becomes due and payable;

(b) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (6) to a default are references to a default in relation to the tax to which payments A and B relate;

(c) a default counts for the purposes of those sub-paragraphs if (but only if) the period to which the payment relates is less than 6 months;

(d) the amount of a default is the amount which P fails to pay.

(8) A penalty period may be extended more than once under sub-paragraph (2)(c).

8D U.K. If any amount of the tax is unpaid after the end of the period of 6 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

8E U.K. If any amount of the tax is unpaid after the end of the period of 12 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.]