SolvedDST65350 | Flat Rate Late Filing Penalties
From HM Revenue & Customs · Digital Services Tax Manual
The flat-rate penalty is:
£100 if the Responsible Member delivers the return within three months after the filing date, or
£200 in any other case.
However, if the Responsible Member:
is within the charge to DST for three consecutive accounting periods for which returns have been required, and
is liable to a flat-rate penalty for each of the first two of those periods, and
fails to make a proper delivery of the return for the third of those periods, then
the amount of the penalty for the third period increases to:
£500 if the Responsible Member delivers the return within three months after the filing date, or
£1,000 if the Responsible Member delivers the return more than three months after the filing date.
These higher amounts are applicable to failures occurring in all successive accounting periods until the Responsible Member delivers its return for an accounting period by the filing date. If the Responsible Member then fails to deliver its return on time for the next accounting period, the lower rates apply.
Example 1
Responsible Member ‘A’ delivers returns for its accounting periods as follows:
| Accounting Period | Date Return Delivered | Penalty under FA20/SCH8/PART9/PARA 52 |
|---|---|---|
| 31.12.20 | 1 month late | £100 |
| 31.12.21 | 4 months late | £200 |
| 31.12.22 | 1 month late | £500 (3rd consecutive accounting period) |
| 31.12.23 | 4 months late | £1,000 |
| 31.12.24 | On time | Nil |
| 31.12.25 | 4 months late | £200 |
| 31.12.26 | 1 month late | £100 |
| 31.12.27 | 1 month late | £500 (3rd consecutive accounting period) |