SCHEDULES
C1C5C3C2C4C6C7C8C9C10C13C12C11C16C17SCHEDULE 24Penalties for errors
Sch. 24 applied (6.4.2008) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), reg. 81(1)(1A), Sch. 4 paras. 21A(8), 21D(9), 21F(12), 22(7), 31(8) (as amended by S.I. 2008/636, reg. 7; S.I. 2010/721, reg. 4; S.I. 2012/821, reg. 11)
Sch. 24 applied (E.W.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), regs. 1(1), 13(3)(b), 40(4), 59(8)(b) (with reg. 1(4)(6))
Sch. 24 applied (N.I.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009 (S.R. 2009/128), regs. 1(1), 9(3)(b), 35(4), 54(8)(b)
Sch. 24 modified (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 37
Sch. 24 applied (with modifications) (19.4.2013) by The Small Charitable Donations Regulations 2013 (S.I. 2013/938), regs. 1, 15
Sch. 24 excluded (17.7.2014) by Finance Act 2014 (c. 26), Sch. 35 para. 13(a)
Sch. 24 applied by 1993 c. 34, Sch. 20A para. 9A(6) (as inserted (19.12.2014) by The Lloyd's Underwriters (Conversion of Partnerships to Underwriting through Successor Companies) (Tax) Regulations 2014 (S.I. 2014/3133), regs. 1, 5(4))
Sch. 24 applied (with modifications) by 1992 c. 4, s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 3)
Sch. 24 applied (with modifications) by 1992 c.7 (N.I.) s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 12)
Sch. 24 applied (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(4)
Sch. 24 applied (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), 50(3)
Sch. 24 applied (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), 24(3)
Sch. 24 applied (with modifications) (1.5.2023) by The Value Added Tax (Margin Schemes and Removal or Export of Goods: VAT-related Payments) Order 2023 (S.I. 2023/68), arts. 1(1), 14 (with art. 1(2))
Sch. 24 applied (14.9.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 (S.I. 2023/912), regs. 1(2), 40(2) (with reg. 1(3))
C15Part 1Liability for penalty
Sch. 24 Pt. 1 modified (10.6.2021 for specified purposes, 1.7.2021 for specified purposes) by 1994 c. 23, Sch. 9ZF para. 9 (as inserted by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 6); S.I. 2021/770, regs. 3, 4 (with regs. 5-7) (as amended (1.4.2022) by The Value Added Tax (Enforcement Related to Distance Selling and Miscellaneous Amendments) Regulations 2022 (S.I. 2022/226), regs. 1, 26(b))
Error in taxpayer's document
I1C141
1
A penalty is payable by a person (P) where—
a
P gives HMRC a document of a kind listed in the Table below, and
b
Conditions 1 and 2 are satisfied.
2
Condition 1 is that the document contains an inaccuracy which amounts to, or leads to—
a
an understatement of F5a liability to tax,
b
a false or inflated statement of a loss F6..., or
c
a false or inflated claim to repayment of tax.
3
Condition 2 is that the inaccuracy was F7careless (within the meaning of paragraph 3) or deliberate on P’s part.
4
Where a document contains more than one inaccuracy, a penalty is payable for each inaccuracy.
Tax | Document |
---|---|
Income tax or capital gains tax | Return under section 8 of TMA 1970 (personal return). |
Income tax or capital gains tax | Return under section 8A of TMA 1970 (trustee's return). |
Income tax or capital gains tax | Return, statement or declaration in connection with a claim for an allowance, deduction or relief. |
Income tax or capital gains tax | Accounts in connection with ascertaining liability to tax. |
Income tax or capital gains tax | Partnership return. |
Income tax or capital gains tax | Statement or declaration in connection with a partnership return. |
Income tax or capital gains tax | Accounts in connection with a partnership return. |
F21Apprenticeship levy | Return under regulations under section 105 of FA 2016. |
F19Capital gains tax | Return under F24Schedule 2 to FA 2019. |
F1Income tax | Return under section 254 of FA 2004. |
Income tax | Return for the purposes of PAYE regulations. |
Construction industry deductions | Return for the purposes of regulations under section 70(1)(a) of FA 2004 in connection with deductions on account of tax under the Construction Industry Scheme. |
Corporation tax | Company tax return under paragraph 3 of Schedule 18 to FA 1998. |
Corporation tax | Return, statement or declaration in connection with a claim for an allowance, deduction or relief. |
Corporation tax | Accounts in connection with ascertaining liability to tax. |
F25Digital services tax | DST return under paragraph 2 of Schedule 8 to FA 2020. |
F31Multinational top-up tax | Overseas return notification and information provided with it |
Multinational top-up tax | Self-assessment return and information provided with it |
Multinational top-up tax | Below-threshold notification and information provided with it |
F32Domestic top-up tax | Overseas return notification and information provided with it |
Domestic top-up tax | Self-assessment return and information provided with it |
Domestic top-up tax | Self-assessment return and information provided with it |
VAT | Below-threshold notification and information provided with it |
VAT | Return, statement or declaration in connection with a claim. |
F26. . . | F26. . . |
F2Insurance premium tax | Return under regulations under section 54 of FA 1994. |
Insurance premium tax | Return, statement or declaration in connection with a claim. |
Inheritance tax | Account under section 216 or 217 of IHTA 1984. |
Inheritance tax | Information or document under regulations under section 256 of IHTA 1984. |
Inheritance tax | Statement or declaration in connection with a deduction, exemption or relief. |
Stamp duty land tax | Return under section 76 of FA 2003. |
Stamp duty reserve tax | Return under regulations under section 98 of FA 1986. |
F18Annual tax on enveloped dwellings | Annual tax on enveloped dwellings return. |
F18Annual tax on enveloped dwellings | Return of adjusted chargeable amount. |
Petroleum revenue tax | Return under paragraph 2 of Schedule 2 to the Oil Taxation Act 1975. |
F15Petroleum revenue tax | Statement or declaration in connection with a claim under paragraph 13A of Schedule 2 to the Oil Taxation Act 1975. |
Petroleum revenue tax | Statement or declaration in connection with a claim under Schedule 5, 6, 7 or 8 to the Oil Taxation Act 1975. |
Petroleum revenue tax | Statement under section 1(1)(a) of the Petroleum Revenue Tax Act 1980. |
F30Plastic packaging tax | Return under regulations under section 61 of FA 2021. |
F23Soft drinks industry levy | Return under regulations under section 52 of FA 2017 |
Aggregates levy | Return under regulations under section 25 of FA 2001. |
Climate change levy | Return under regulations under paragraph 41 of Schedule 6 to FA 2000. |
Landfill tax | Return under regulations under section 49 of FA 1996. |
Air passenger duty | Return under section 38 of FA 1994. |
Alcoholic liquor duties | Return under regulations under section 13, 49, 56 or 62 of the Alcoholic Liquor Duties Act 1979. |
F29Alcohol duty | Statement or declaration in connection with a claim for repayment of duty under section 75 of F(No. 2)A 2023. |
Tobacco products duty | Return under regulations under section 7 of the Tobacco Products Duties Act 1979. |
Hydrocarbon oil duties | Return under regulations under section 21 of the Hydrocarbon Oil Duties Act 1979. |
Excise duties | Return under regulations under section 93 of CEMA 1979. |
Excise duties | Return under regulations under section 100G or 100H of CEMA 1979. |
Excise duties | Statement or declaration in connection with a claim. |
General betting duty | Return under regulations under paragraph 2 of Schedule 1 to BGDA 1981. |
Pool betting duty | Return under regulations under paragraph 2A of Schedule 1 to BGDA 1981. |
Bingo duty | Return under regulations under paragraph 9 of Schedule 3 to BGDA 1981. |
Lottery duty | Return under regulations under section 28(2) of FA 1993. |
Gaming duty | Return under directions under paragraph 10 of Schedule 1 to FA 1997. |
Remote gaming duty | Return under regulations under section 26K of BGDA 1981. |
F17Machine games duty | Return under regulations under paragraph 18 of Schedule 24 to FA 2012 |
F3Any of the taxes mentioned above | Any document which is likely to be relied upon by HMRC to determine, without further inquiry, a question about—
|
F274A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F274B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F274C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F45
In relation to a return under paragraph 2 of Schedule 2 to the Oil Taxation Act 1975 F16or a statement or declaration under paragraph 13A of that Schedule, references in this Schedule to P include any person who, after the giving of the return for a taxable field (within the meaning of that Act), becomes the responsible person for the field (within the meaning of that Act).
F13Error in taxpayer's document attributable to another person
Sch. 24 para. 1A and cross-heading inserted (1.4.2009) by Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 3; S.I. 2009/571, art. 2
1A
1
A penalty is payable by a person (T) where—
a
another person (P) gives HMRC a document of a kind listed in the Table in paragraph 1,
b
the document contains a relevant inaccuracy, and
c
the inaccuracy was attributable to T deliberately supplying false information to P (whether directly or indirectly), or to T deliberately withholding information from P, with the intention of the document containing the inaccuracy.
2
A “relevant inaccuracy” is an inaccuracy which amounts to, or leads to—
a
an understatement of a liability to tax,
b
a false or inflated statement of a loss, or
c
a false or inflated claim to repayment of tax.
3
A penalty is payable under this paragraph in respect of an inaccuracy whether or not P is liable to a penalty under paragraph 1 in respect of the same inaccuracy.
Under-assessment by HMRC
I22
1
A penalty is payable by a person (P) where—
a
an assessment issued to P by HMRC understates P's liability to F8a relevant tax, and
b
P has failed to take reasonable steps to notify HMRC, within the period of 30 days beginning with the date of the assessment, that it is an under-assessment.
2
In deciding what steps (if any) were reasonable HMRC must consider—
a
whether P knew, or should have known, about the under-assessment, and
b
what steps would have been reasonable to take to notify HMRC.
F93
In sub-paragraph (1) “relevant tax” means any tax mentioned in the Table in paragraph 1.
F144
In this paragraph (and in Part 2 of this Schedule so far as relating to this paragraph)—
a
“assessment” includes determination, and
b
accordingly, references to an under-assessment include an under-determination.
Degrees of culpability
I33
1
F10For the purposes of a penalty under paragraph 1, inaccuracy in a document given by P to HMRC is—
a
“careless” if the inaccuracy is due to failure by P to take reasonable care,
b
“deliberate but not concealed” if the inaccuracy is deliberate F11on P's part but P does not make arrangements to conceal it, and
c
“deliberate and concealed” if the inaccuracy is deliberate F11on P's part and P makes arrangements to conceal it (for example, by submitting false evidence in support of an inaccurate figure).
2
An inaccuracy in a document given by P to HMRC, which was neither careless nor deliberate F12on P's part when the document was given, is to be treated as careless if P—
a
discovered the inaccuracy at some later time, and
b
did not take reasonable steps to inform HMRC.
F203
Paragraph 47 of Schedule 19 to FA 2016 (special measures for persistently unco-operative large businesses) provides for certain inaccuracies to be treated, for the purposes of this Schedule, as being due to a failure by P to take reasonable care.
Sch. 24 applied (N.I.) (1.4.2008) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 7(2A)(b), 26(4) (as amended by S.R. 2008/129, regs. 1, 3(a), 4)