PART X PENALTIES, ETC.
F198ASpecial penalties in the case of certain returns.
(1)
F2PAYE regulations or regulations under section 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, 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.