[F18H(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 8G(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, second or third default during the penalty period, P is liable, at the time of the default, to a penalty of 1% of the amount of the default.
(5)If the default is P’s fourth, fifth or sixth 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.
(6)If the default is P’s seventh, eighth or ninth 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.
(7)If the default is P’s tenth 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.
(8)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 (7) 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.
(9)A penalty period may be extended more than once under sub-paragraph (2)(c).]
Textual Amendments
F1Sch. 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2010 (c. 33), s. 27(2), Sch. 11 para. 7 (as amended by 2014 c. 26, Sch. 22 para. 22(6), which amending provision was repealed by 2018 c. 22, s. 57(3), Sch. 8 para. 132(l) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I.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)