SCHEDULE 5MONETARY PENALTIES

Regulations 32(4), 54(8) and 61(4)

Introduction1

This Schedule applies in relation to the imposition by the Secretary of State of a monetary penalty under these Regulations.

Procedure2

1

Before imposing a monetary penalty under these Regulations, the Secretary of State must notify the person on whom the penalty is to be imposed of the Secretary of State's intention to do so.

2

The notice must—

a

specify the proposed amount of the penalty (which must not exceed £50,000),

b

specify the Secretary of State's reasons for proposing to impose the penalty,

c

specify the period during which the person on whom the penalty is to be imposed may make representations about the proposal (“the specified period”), and

d

specify the way in which those representatives may be made.

3

The specified period must not be less than 28 days beginning with the date on which the notice is received.

4

The Secretary of State must have regard to any representations made by the person during the specified period in deciding whether to impose a monetary penalty on it.

5

Having decided whether or not to impose a monetary penalty, the Secretary of State must notify the person of the Secretary of State's decision.

6

Where the decision is to impose a monetary penalty, the notice must specify—

a

the amount of the penalty, and

b

the period within which the penalty must be paid or the periods within which different portions of the penalty must be paid.

7

The notice must also contain information as to—

a

the grounds for imposing the penalty,

b

how payment may be made,

c

rights of appeal,

d

the period within which an appeal may be made, and

e

the consequences of non-payment.

8

The requirement to pay the penalty is suspended at any time when an appeal could be brought in respect of the penalty or such an appeal is pending.

9

But sub-paragraph (8) does not prevent the requirement to pay taking effect if the person notifies the Secretary of State that it does not intend to appeal.

Appeals3

1

A person on whom a monetary penalty is imposed, may appeal to the First-tier Tribunal against—

a

a decision under these Regulations to impose a monetary penalty on the pern;

b

a decision as to the amount of the penalty.

2

An appeal under this paragraph may be made on the grounds—

a

that the decision was based on an error of fact;

b

that the decision was wrong in law;

c

that the decision was unreasonable.

3

On an appeal under this paragraph the Tribunal may—

a

withdraw the requirement to pay the penalty;

b

confirm that requirement;

c

vary that requirement;

d

remit the decision whether to confirm the requirement to pay the penalty, or any matter relating to that decision, to the Secretary of State.

Interest and recovery4

1

This paragraph applies if all or part of a monetary penalty imposed under these Regulations is unpaid by the time when it is required to be paid.

2

The unpaid amount of the penalty for the time being—

a

carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838 M1, and

b

does not also carry interest as a judgment debt under that section.

3

The total amount of interest imposed under sub-paragraph (2) must not exceed the amount of the penalty.

4

The Secretary of State may recover from the person on whom it is imposed, as a civil debt, the unpaid amount of the penalty and any unpaid interest.

5

Any sums received by the Secretary of State by way of a penalty imposed under these Regulations or interest under this paragraph must be paid into the Consolidated Fund.