Taxes Management Act 1970

98A [Special penalties in the case of certain returns. U.K.

(1) Regulations under section 203(2) (PAYE) or 566(1) (sub-contractors) of the principal Act may provide that this section shall apply in relation to any specified provision of the regulations.

(2) Where this section applies in relation to a provision of regulations, any person who fails to make a return in accordance with the provision shall be liable—

(a) to a penalty or penalties of the relevant monthly amount for each month (or part of a month) during which the failure continues, but excluding any month after the twelfth or for which a penalty under this paragraph has already been imposed F1 , and

(b) if the failure continues beyond twelve months, without prejudice to any penalty under paragraph (a) above, to a penalty not exceeding so much of the amount payable by him in accordance with the regulations for the year of assessment to which the return relates as remained unpaid at the end of 19th April after the end of that year.

(3) For the purposes of subsection (2)(a) above, the relevant monthly amount in the case of a failure to make a return—

(a) where the number of persons in respect of whom particulars should be included in the return is fifty or less, is £100, and

(b) where the number is greater than fifty, is £100 for each fifty such persons and an additional £100 where that number is not a multiple of fifty.

(4) Where this section applies in relation to a provision of regulations, any person who fraudulently or negligently makes an incorrect return of a kind mentioned in the provision shall be liable to a penalty not exceeding the difference between—

(a) the amount payable by him in accordance with the regulations for the year of assessment to which the return relates, and

(b) the amount which would have been so payable if the return had been correct F2 .] F3 F4

Textual Amendments

F1 See Finance Act 1989 s. 165(2)for change to subs. (2)(a) in the case of a failure to make a return before a day to be appointed.

F2 Finance Act 1989 s. 165(1).

F3 See—S.I. 1973 No. 334, regn. 30(8) (in Part III Vol. 5)—end of year return by employer; and regn. 51(9)—alternative procedure for direct collection.S.I. 1975 No. 1960, regn. 10 (in Part III Vol. 5)—end of year return by contractor.

F4 S. 98A,as modified by para. 5A of Sch. 1 of Social Security Act 1975 (c. 14)as inserted by Social Security Act 1990 (c. 27) Sch. 5),is applied to returns of contributions under regns. 30(7)and 51(10)of the Social Security (Contributions) Regns. 1979 (S.I. 1975 No. 591)(as inserted byS.I. 1990 No. 1935).For Northern Ireland see para. 5A of Sch. 1 Social Security (Northern Ireland) Act 1975, art. 19(5)and Sch. 5 Social Security (Northern Ireland) Order 1990and S.R. 1990 No. 350).

Modifications etc. (not altering text)

C1 S. 98A power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(9)-(12)

S. 98A power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), ss. 1(4), 173(4), Sch. 1, para. 7(2)(9)-(12)

S. 98A(2)(a) restricted (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(3)

S. 98A(2)(b)(4) modified (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(4)

C2 S. 98A applied (6.4.1993) by S.I. 1993/743, reg. 11(11)

C3 S. 98A applied (6.4.1993) by S.I. 1993/744, reg. 43(12)

C4 S. 98A applied (6.4.1993) by S.I. 1993/744, reg. 104(16)