IEIM905310 | Penalty Reductions for Initial Failure Penalties

A penalty of up to £5,000 may be charged if a platform operator fails to comply with any of the following obligations:

• Failure to file a report on time (see IEIM905110)

• Failure to provide information to reportable sellers on time (see IEIM905120)

• Failure to provide an officer of Revenue and Customs with information in respect of your obligations under the Regulations as specified within 30 days following a written notice (see IEIM905130)

• Failure to comply with record keeping requirements (see IEIM905140)

When assessing the amount of the penalty, HMRC will consider the frequency of the failure. A first failure will attract a lower penalty, while subsequent failures will lead to increased penalty levels. Each category of penalty listed above will be considered independently, so the level of penalty for a failure to report information to reportable sellers in year 2 will not be affected by a failure to report on time in year 1. Where a failure is followed by subsequent years of compliance, a further failure will attract a lower penalty again.