Coronavirus Act 2020

Section 28

SCHEDULE 15 Information relating to food supply chains: financial penalties

Notice of intent

1 (1) Before an appropriate authority imposes a financial penalty on a person under section 28, the authority must by written notice (a “notice of intent”) inform the person that it intends to impose the penalty.

(2) The notice of intent must specify—

(a) the amount of the proposed financial penalty,

(b) the reasons for proposing to impose the penalty, and

(c) information about the right to make representations in accordance with this Schedule.

Amount of penalty

2 (1) The maximum amount of a financial penalty that may be specified in a notice of intent given to a person who is carrying on a business consisting of the provision of goods or services is 1% of the qualifying turnover of the person.

(2) In sub-paragraph (1), “qualifying turnover”, in relation to a person, means the amount of the person’s turnover for their most recent complete accounting period (or, if their first accounting period has not yet ended, the amount the appropriate authority estimates to be the likely turnover for that period).

(3) For the purposes of sub-paragraph (2) the amount of a person’s turnover for an accounting period is, in the event of a disagreement between the person and the appropriate authority, the amount determined by that authority.

(4) For the purposes of this paragraph—

• “accounting period”, in relation to a person, means a period in respect of which accounts are prepared in relation to that person;

• “turnover”, in relation to a person, means the amounts derived from the provision of goods and services by the person, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived.

Right to make representations

3 A person to whom a notice of intent is given may, within the period of 14 days beginning with the day after that on which the notice was given, make written representations about the proposed financial penalty to the appropriate authority which gave the notice.

Final notice

4 (1) After the end of the period of 14 days referred to in paragraph 3 the appropriate authority which gave the written notice must—

(a) decide whether to impose a financial penalty on the person, and

(b) if the authority decides to do so, decide the amount of the penalty (which may not exceed the amount proposed in the notice of intent).

(2) If the appropriate authority decides to impose a financial penalty on the person, it must do so by written notice (a “final notice”).

(3) The final notice must require the person to pay the financial penalty within the period of 28 days beginning with the day after that on which the notice was given to the person.

(4) The final notice must specify—

(a) the amount of the financial penalty,

(b) the reasons for imposing the penalty,

(c) information about how to pay the penalty,

(d) the period for payment of the penalty,

(e) information about rights of appeal, and

(f) the consequences of failure to comply with the notice (including the consequences specified in paragraph 5).

Late payment

5 (1) This paragraph applies if a person to whom a final notice is given does not pay the financial penalty specified in the notice within the period of 28 days referred to in paragraph 4(3).

(2) The amount of the penalty is increased by 50%.

(3) The appropriate authority which gave the final notice may publish, in such manner as it thinks fit—

(a) the fact that the penalty has been imposed on the person,

(b) the amount of the penalty, and

(c) the grounds on which it was imposed.

Withdrawal or amendment of notice

6 (1) The appropriate authority may at any time—

(a) withdraw a notice of intent or final notice, or

(b) reduce the amount specified in a notice of intent or final notice.

(2) The power in sub-paragraph (1) is to be exercised by giving notice in writing to the person to whom the notice of intent or final notice was given.

Appeals

7 (1) A person on whom a financial penalty is imposed by a final notice may appeal against the notice—

(a) in England and Wales, to the First-tier Tribunal,

(b) in Scotland, to the sheriff or summary sheriff, and

(c) in Northern Ireland, to a county court.

(2) The grounds for an appeal under this paragraph are that—

(a) the decision to impose the financial penalty was based on an error of fact,

(b) the decision was wrong in law,

(c) the amount of the penalty is unreasonable, or

(d) the decision was unreasonable for any other reason.

(3) If a person appeals under this paragraph, the final notice is suspended until the appeal is finally determined or withdrawn.

(4) On an appeal under this paragraph the tribunal, court, sheriff or summary sheriff may—

(a) quash the final notice,

(b) confirm the final notice,

(c) vary the final notice by reducing the amount of the financial penalty, or

(d) remit to the appropriate authority the decision whether to—

(i) withdraw or confirm the final notice, or

(ii) vary the final notice by reducing the amount of the financial penalty.

Enforcement

8 If a person does not pay the whole or any part of a financial penalty which the person is liable to pay under this Schedule, the penalty or part of the penalty is recoverable—

(a) in England and Wales or Northern Ireland, if the county court so orders, as if it were payable under an order of that court, and

(b) in Scotland, in the same manner as an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.