ECL31300 | Enforcement: Penalties: Failure to make the ECL payment on time

Payment of the Economic Crime Levy is covered by SI 2002/269. Part 5 applies where HMRC is the appropriate collection authority.

Where HMRC is the appropriate collection authority [see ECL11200], a person liable to pay the levy must pay it to HMRC.

There are two scenarios where the levy may not have been paid to HMRC: -

1. A correct return has been filed but no payment has been made. In this situation HMRC would seek to collect the declared amount without the need for an assessment.

2. No return has been filed.

Initial Penalty

The initial penalty on a person who has not paid the ECL by due date is £250.

30 Days Penalty

If the person has still not paid the levy by the date which is 30 days after the due date, an additional £250 penalty is payable.

3 Months Penalty

If the person has not paid the ECL due 3 months after the due date, a penalty amount is payable of 5% of the amount of levy HMRC considers due.

If no return has been submitted, the 5% penalty is calculated by considering information such as the ECL liabilities in previous years and available financial accounts to make a reasonable estimate of what banding the customer will fall in.

Penalties after an amendment or an assessment

If you filed a return and paid the levy on time, but later amend your return, we will only charge you late payment penalties if you do not pay any additional levy immediately. The same applies if you filed and paid on time, we later issue an assessment, and you do not pay that assessed amount within 30 days.