SCHEDULES

SCHEDULE 55Penalty for failure to make returns etc

F1Amount of penalty: returns for periods of between 2 and 6 months

13C

(1)

This paragraph applies if—

(a)

a penalty period has begun under paragraph 13B or 13G because P has failed to make a return (“return A”), and

(b)

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

(2)

In such a case—

(a)

paragraph 13B(1) and (2) do not apply to the failure to make return B, but

(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 filing date for return B.

(3)

The amount of the penalty under this paragraph is determined by reference to the number of returns that P has failed to make during the penalty period.

(4)

If the failure to make return B is P's first failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £200.

(5)

If the failure to make return B is P's second failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £300.

(6)

If the failure to make return B is P's third or a subsequent failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £400.

(7)

For the purposes of this paragraph—

(a)

in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (6) to a return are references to a return falling within the same item in the Table as returns A and B, and

(b)

a failure to make a return counts for the purposes of those sub-paragraphs if (but only if) the return relates to a period of less than 6 months.

(8)

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