Increased daily default penalty

49A

1

This paragraph applies if—

a

a penalty under paragraph 40 is assessed under paragraph 46 in respect of a person's failure to comply with a notice under paragraph 5,

b

the failure continues for more than 30 days beginning with the date on which notification of that assessment was issued, and

c

the person has been told that an application may be made under this paragraph for an increased daily penalty to be imposed.

2

If this paragraph applies, an officer of Revenue and Customs may make an application to the tribunal for an increased daily penalty to be imposed on the person.

3

If the tribunal decides that an increased daily penalty should be imposed, then for each applicable day (see paragraph 49B) on which the failure continues—

a

the person is not liable to a penalty under paragraph 40 in respect of the failure, and

b

the person is liable instead to a penalty under this paragraph of an amount determined by the tribunal.

4

The tribunal may not determine an amount exceeding £1,000 for each applicable day.

5

But subject to that, in determining the amount the tribunal must have regard to—

a

the likely cost to the person of complying with the notice,

b

any benefits to the person of not complying with it, and

c

any benefits to anyone else resulting from the person's non-compliance.

6

Paragraph 41 applies in relation to the sum specified in sub-paragraph (4) as it applies in relation to the sums mentioned in paragraph 41(1).

49B

1

If a person becomes liable to a penalty under paragraph 49A, HMRC must notify the person.

2

The notification must specify the day from which the increased penalty is to apply.

3

That day and any subsequent day is an “applicable day” for the purposes of paragraph 49A(3).

49C

1

A penalty under paragraph 49A must be paid before the end of the period of 30 days beginning with the date on which the notification under paragraph 49B is issued.

2

A penalty under paragraph 49A may be enforced as if it were income tax charged in an assessment and due and payable.