Penalties for breach of obligations
Increased daily default penaltyF121
1
Paragraph (2) applies if—
a
a person is liable to a penalty under regulation 14 and a penalty is assessed under regulation 18, and
b
the failure in respect of which that assessment is made continues for more than 30 days beginning with the date on which notification of that assessment is given.
2
Where this paragraph applies, an officer of Revenue and Customs may make an application to the tribunal for permission to assess an increased daily penalty under regulation 14.
3
An officer of Revenue and Customs must notify the person liable to the penalty of an application under paragraph (2) at the time of making it.
4
If the tribunal determines that an increased daily penalty may be assessed then for each applicable day on which the failure continues, the person’s liability to a penalty under regulation 14 shall be for that increased amount.
5
The tribunal may not determine that an increased daily penalty may be assessed for an amount exceeding £1000 for each applicable day.
6
If the tribunal determines that an increased daily penalty may be assessed, HMRC must notify the person liable to the penalty.
7
The notification under paragraph (6) must specify the future day from which the increased penalty is to apply.
8
That day and any subsequent day is an “applicable day” for the purposes of paragraph (4) and (5).