Finance Act 2009

Amount of penalty: PAYE and CIS amounts [F1 etc.] U.K.

Textual Amendments

F1 Word in Sch. 56 para. 5 cross-heading inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 113(15) (with s. 117)

5 (1) Paragraphs 6 to 8 apply in the case of a payment of tax falling within item 2[F2 , 4 or 4A] in the Table. U.K.

(2) But those paragraphs do not apply in the case of a payment mentioned in paragraph 3(1)(b)[F3 , (c) or (ca)].

Textual Amendments

F2 Words in Sch. 56 para. 5(1) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 113(12) (with s. 117)

F3 Words in Sch. 56 para. 5(2) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 113(13) (with s. 117)

Commencement Information

I1 Sch. 56 para. 5 in force at 6.4.2010 for specified purposes by S.I. 2010/466, art. 3

I2 Sch. 56 para. 5 in force at 6.4.2011 for specified purposes by S.I. 2011/702, art. 3

I3 Sch. 56 para. 5 in force at 1.1.2015 for specified purposes by S.I. 2014/3269, art. 3 (as amended by S.I. 2014/3346, art. 2)

I4 Sch. 56 para. 5 in force at 15.9.2016 for specified purposes by 2016 c. 24, s. 113(18) (with s. 117)

I5 Sch. 56 para. 5 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I6 Sch. 56 para. 5 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 30(5)

I7 Sch. 56 para. 5 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)

[F4 6 [F5 (1) P is liable to a penalty under this paragraph, in relation to each tax, each time that P makes a default in relation to a tax year.] U.K.

(2) For the purposes of this paragraph, P makes a default [F6 in relation to a tax year] when P fails to make one of the following payments (or to pay an amount comprising two or more of those payments) in full on or before the date on which it becomes due and payable—

(a) a payment under PAYE regulations [F7 of tax payable in relation to the tax year];

(b) a payment of earnings-related contributions within the meaning of the Social Security (Contributions) Regulations 2001 ( S.I. 2001/1004) [F8 payable in relation to the tax year];

[F9 (ba) a payment under regulations under section 105 of FA 2016 of an amount in respect of apprenticeship levy payable in relation to the tax year;]

(c) a payment due under the Income Tax (Construction Industry Scheme) Regulations 2005 ( S.I. 2005/2045) [F10 payable in relation to the tax year] ;

(d) a repayment in respect of a student loan due under the Education (Student Loans) (Repayments) Regulations 2009 ( S.I. 2009/470) or the Education (Student Loans) (Repayments) Regulations (Northern Ireland) 2000 (S.R. 2000 No. 121) [F11 and due for the tax year] .

[F12 (3) But where a failure to make one of those payments (or to pay an amount comprising two or more of those payments) would, apart from this sub-paragraph, constitute the first default in relation to a tax year, that failure does not count as a default in relation to that year for the purposes of a penalty under this paragraph.

(4) The amount of the penalty for a default made in relation to a tax year is determined by reference to—

(a) the amount of the tax comprised in the default, and

(b) the number of previous defaults that P has made in relation to the same tax year.

(5) If the default is P's 1st, 2nd or 3rd default in relation to the tax year, P is liable, at the time of the default, to a penalty of 1% of the amount of tax comprised in the default.

(6) If the default is P's 4th, 5th or 6th default in relation to the tax year, P is liable, at the time of the default, to a penalty of 2% of the amount of tax comprised in the default.

(7) If the default is P's 7th, 8th or 9th default in relation to the tax year, P is liable, at the time of the default, to a penalty of 3% of the amount of tax comprised in the default.

(7A) If the default is P's 10th or subsequent default in relation to the tax year, P is liable, at the time of the default, to a penalty of 4% of the amount of tax comprised in the default.]

(8) For the purposes of this paragraph—

(a) the amount of a tax comprised in a default is the amount of that tax comprised in the payment which P fails to make;

[F13 (b) a previous default counts for the purposes of sub-paragraphs (5) to (7A) even if it is remedied before the time of the default giving rise to the penalty.]

[F14 (8A) Regulations made by the Commissioners for Her Majesty's Revenue and Customs may specify—

(a) circumstances in which, for the purposes of sub-paragraph (2), a payment of less than the full amount may be treated as a payment in full;

(b) circumstances in which sub-paragraph (3) is not to apply.

(8B) Regulations under sub-paragraph (8A) may—

(a) make different provision for different cases, and

(b) include incidental, consequential and supplementary provision.]

(9) The Treasury may by order made by statutory instrument make such amendments to sub-paragraph (2) as they think fit in consequence of any amendment, revocation or re-enactment of the regulations mentioned in that sub-paragraph.]

Textual Amendments

F4 Sch. 56 para. 6 substituted (25.1.2011) by Finance (No. 3) Act 2010 (c. 33), s. 27(2), Sch. 11 para. 6; S.I. 2011/132, art. 2(b)

F5 Sch. 56 para. 6(1) substituted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(2)

F6 Words in Sch. 56 para. 6(2) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(a)

F7 Words in Sch. 56 para. 6(2)(a) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(b)

F8 Words in Sch. 56 para. 6(2)(b) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(c)

F9 Sch. 56 para. 6(2)(ba) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 113(14) (with s. 117)

F10 Words in Sch. 56 para. 6(2)(c) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(d)

F11 Words in Sch. 56 para. 6(2)(d) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(3)(e)

F12 Sch. 56 para. 6(3)-(7A) substituted for Sch. 56 para. 6(3)-(7) (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(4)

F13 Sch. 56 para. 6(8)(b) substituted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(5)

F14 Sch. 56 para. 6(8A)(8B) inserted (with effect in accordance with Sch. 50 para. 16(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 12(6)

Commencement Information

I8 Sch. 56 para. 6 in force at 6.4.2011 for specified purposes by S.I. 2011/702, art. 3

I9 Sch. 56 para. 6 in force at 1.1.2015 for specified purposes by S.I. 2014/3269, art. 3 (as amended by S.I. 2014/3346, art. 2)

I10 Sch. 56 para. 6 in force at 15.9.2016 for specified purposes by 2016 c. 24, s. 113(18) (with s. 117)

I11 Sch. 56 para. 6 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I12 Sch. 56 para. 6 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 30(5)

I13 Sch. 56 para. 6 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)

7 U.K. If any amount of the tax is unpaid after the end of the period of 6 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

Commencement Information

I14 Sch. 56 para. 7 in force at 6.4.2010 for specified purposes by S.I. 2010/466, art. 3

I15 Sch. 56 para. 7 in force at 6.4.2011 for specified purposes by S.I. 2011/702, art. 3

I16 Sch. 56 para. 7 in force at 15.9.2016 for specified purposes by 2016 c. 24, s. 113(18) (with s. 117)

I17 Sch. 56 para. 7 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I18 Sch. 56 para. 7 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 30(5)

I19 Sch. 56 para. 7 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)

8 U.K. If any amount of the tax is unpaid after the end of the period of 12 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

Commencement Information

I20 Sch. 56 para. 8 in force at 6.4.2010 for specified purposes by S.I. 2010/466, art. 3

I21 Sch. 56 para. 8 in force at 6.4.2011 for specified purposes by S.I. 2011/702, art. 3

I22 Sch. 56 para. 8 in force at 15.9.2016 for specified purposes by 2016 c. 24, s. 113(18) (with s. 117)

I23 Sch. 56 para. 8 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I24 Sch. 56 para. 8 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 30(5)

I25 Sch. 56 para. 8 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)