SCHEDULES

SCHEDULE 12Trading income provided through third parties: loans etc outstanding on 5 April 2019

F1Duty to provide loan charge information: penalties

25

(1)

A person who fails to comply with paragraph 22 is liable to a penalty of £300.

(2)

Sub-paragraph (3) applies if the failure continues after the date on which a penalty is imposed under sub-paragraph (1) in respect of the failure.

(3)

The person is liable to a further penalty or penalties not exceeding £60 for each subsequent day, up to a maximum of 90 days, on which the failure continues.

26

(1)

This paragraph applies if—

(a)

in complying with the duty under paragraph 22, a person provides inaccurate information, and

(b)

condition A, B or C is met.

(2)

Condition A is that the inaccuracy is careless or deliberate.

(3)

An inaccuracy is careless if it is due to a failure by the person to take reasonable care.

(4)

Condition B is that the person knows of the inaccuracy at the time the information is provided but does not inform HMRC at that time.

(5)

Condition C is that the person—

(a)

discovers the inaccuracy some time later, and

(b)

fails to take reasonable steps to inform HMRC.

(6)

The person is liable to a penalty not exceeding £3000.

(7)

Where the information contains more than one inaccuracy, a penalty is payable for each inaccuracy.