Section 421JC | Penalties for late returns ^F1F2

(1)This section applies if a person fails to give a return under section 421JA for a tax year (containing, or accompanied by, all required information) on or before the date mentioned in section 421JA(4)(b) (“the date for delivery”).^F1F2

(2)The person is liable for a penalty of £100.^F1F2

(3)If the person's failure continues after the end of the period of 3 months beginning with the date for delivery, the person is liable for a further penalty of £300.^F1F2

(4)If the person's failure continues after the end of the period of 6 months beginning with the date for delivery, the person is liable for a further penalty of £300.^F1F2

(5)The person is liable for a further penalty under this subsection if—^F1F2

(a)the person's failure continues after the end of the period of 9 months beginning with the date for delivery,^F1F2

(b)HMRC decide that such a penalty should be payable, and^F1F2

(c)HMRC give notice to the person specifying the period in respect of which the penalty is payable.^F1F2

(The person may be liable for more than one penalty under this subsection.)

(6)The penalty under subsection (5) is £10 for each day that the failure continues during the period specified in the notice under subsection (5)(c).^F1F2

(7)The period specified in the notice under subsection (5)(c)—^F1F2

(a)may begin earlier than the date on which the notice is given, but^F1F2

(b)may not begin until after the end of the period mentioned in subsection (5)(a) or, if relevant, the end of any period specified in any previous notice under subsection (5)(c) given in relation to the failure.^F1F2

(8)Liability for a penalty under this section does not arise if the person satisfies HMRC (or, on an appeal under section 421JF, the tribunal) that there is a reasonable excuse for the person's failure.^F1F2

(9)For the purposes of subsection (8)—^F1F2

(a)an insufficiency of funds is not a reasonable excuse, unless attributable to events outside the person's control,^F1F2

(b)where the person relies on any other person to do anything, that is not a reasonable excuse unless the (first mentioned) person took reasonable care to avoid the failure, and^F1F2

(c)where the person had a reasonable excuse for the failure but the excuse ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.^F1F2