Amendment of the Income Tax (Pay As You Earn) Regulations 2003
20. For regulation 210 (penalties and appeals) substitute—
“Penalty for failing to deliver specified information
210.—(1) A specified employer who fails to deliver specified information or any part of it in accordance with regulation 205 is liable to a penalty.
(2) The penalty must be determined in accordance with regulation 210A where the specified information concerned is the return and accompanying information required by regulation 73 (annual return of relevant payments liable to deduction of tax (Forms P35 and P14)).
(3) The penalty must be determined in accordance with regulation 210B in all other cases.
(4) Regulation 210C applies irrespective of how the penalty falls to be determined.
Penalty: regulation 73 return and accompanying information (Forms P35 and P14)
210A. Table 9 sets out the penalty for the tax years ending 5th April 2005 to 5th April 2009, depending on the number of employees for whom particulars should have been included with the specified information.
Table 9
Penalties: tax years ending 5th April 2005 to 5th April 2009
| 1. Number of employees for whom particulars should have been included with the specified information | 2. Penalty |
|---|---|
| 1 – 49 | nil |
| 50 – 249 | nil for tax year ending 5th April 2005, £600 for subsequent years |
| 250 – 399 | £900 |
| 400 – 499 | £1,200 |
| 500 – 599 | £1,500 |
| 600 – 699 | £1,800 |
| 700 – 799 | £2,100 |
| 800 – 899 | £2,400 |
| 900 – 999 | £2,700 |
| 1000 or more | £3,000 |
Penalty: Form P45 (Part 1 or Part 3), P46 or P46(Pen)
210B.—(1) This regulation applies for the tax quarter ending on 5th April 2010 and the tax year ending on 5th April 2011 (the “relevant period”).
(2) Table 9A sets out the penalties for the relevant period depending on the number of items of specified information the employer has failed to deliver in each tax quarter falling within that period.
Table 9A
Penalties: tax quarter ending 5th April 2010 and tax year ending 5th April 2011
| 1. Number of items of specified information the employer has failed to deliver in the tax quarter | 2. Penalty |
|---|---|
| 1 – 5 | Nil |
| 6 – 49 | £100 |
| 50 – 149 | £300 |
| 150 – 299 | £600 |
| 300 – 399 | £900 |
| 400 - 499 | £1,200 |
| 500 – 599 | £1,500 |
| 600 - 699 | £1,800 |
| 700 – 799 | £2,100 |
| 800 – 899 | £2,400 |
| 900 – 999 | £2,700 |
| 1000 or more | £3,000 |
(3) Each of the types of specified information mentioned in sub-paragraphs (a) to (d) of regulation 207(1) counts as a separate item of specified information for this purpose.
(4) An item of specified information counts even if it relates to the same employee as one or more other items.
Appeals and interest
210C.—(1) An employer is not liable to a penalty if the employer had a reasonable excuse for failing to comply with regulation 205 which had not ceased at the time the specified information was delivered.
(2) A notice of appeal against a determination under section 100 of TMA(1) of a penalty can only be on the grounds that—
(a)the employer is not a specified employer, subject to paragraph (3),
(b)the employer did comply with regulation 205,
(c)the amount of the penalty is incorrect, or
(d)paragraph (1) applies.
(3) An employer may not appeal on the grounds that the employer is not a specified employer if the employer has already appealed under regulation 208(2) (appeal against e-filing notice).
(4) Section 103A of TMA(2) (interest on penalties) applies to this penalty.”.
The Income Tax (Pay As You Earn) Regulations 2003 define “TMA” as meaning the Taxes Management Act 1970 (c. 9). Section 100 of that Act was substituted by section 167 of the Finance Act 1989 (c. 26). There have been amendments to section 100 but none is relevant.
Section 103A of the Taxes Management Act 1970 was inserted by paragraph 33 of Schedule 19 to the Finance Act 1994 (c. 9) and amended by section 115(8) of the Finance Act 1995 (c. 4) and paragraph 40 of Schedule 19 to the Finance Act 1998 (c. 36).