SCHEDULES

SCHEDULE 55Penalty for failure to make returns etc

6Amount of penalty: occasional returns and annual returns

1

P is liable to a penalty under this paragraph if (and only if) P’s failure continues after the end of the period of 12 months beginning with the penalty date.

2

Where, by failing to make the return, P withholds information which would enable or assist HMRC to assess P’s liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).

3

If the withholding of the information is deliberate and concealed, the penalty is the greater of—

a

100% of any liability to tax which would have been shown in the return in question, and

b

£300.

4

If the withholding of the information is deliberate but not concealed, the penalty is the greater of—

a

70% of any liability to tax which would have been shown in the return in question, and

b

£300.

5

In any other case, the penalty under this paragraph is the greater of—

a

5% of any liability to tax which would have been shown in the return in question, and

b

£300.