RSTP3007 - Penalties for failing to make SLfT return on time

In this page of guidance the ‘penalty date’ means the day after the filing date.

If you fail to make a SLfT return (outlined in the table in RSTP3005) on or before the filing date (specified in column 4 of that table) then on the penalty date you become liable to a fixed penalty of £100. In addition, a penalty period begins to run from the penalty date for the return. This penalty period ends 12 months after the filing date for the return, unless it is extended by the rules below.

If a penalty period has begun because you have failed to make a previous SLfT return (‘return A’), and before the end of that penalty period you fail to make another SLfT return (‘return B’) for a different accounting period:

• you are still liable to a penalty of £100 for failing to make return A on time;
• the penalty period that has begun in relation to return A is extended so that it now ends 12 months after the filing date for return B; and
• you are liable to a penalty for failing to make return B on time. This penalty amount is determined by the number of returns that you have failed to make during the penalty period.

If the failure to make return B is your first failure to make a return during the penalty period, you are liable (at the time of the failure) to a penalty of £200.

If the failure to make return B is your second failure to make a return during the penalty period, you are liable (at the time of the failure) to a penalty of £300.

If the failure to make return B is your third or subsequent failure to make a return during the penalty period, you are liable (at the time of the failure) to a penalty of £400.

Each time you fail to make a return during the penalty period, the penalty period is extended so that it instead ends 12 months after the filing date for the latest return you have failed to make during the penalty period.

If your failure to make any SLfT return continues six months after the penalty date for that return, we may decide that you are liable to a further penalty (additional to any other penalties already imposed). The penalty amount is the greater of:

• 5% of any tax liability which would have been shown in the tax return in question (had you made it to us); and
• £300.

If your failure to make any SLfT return continues 12 months after the penalty date, we may decide that you are liable to a further penalty (additional to any other penalties already imposed). The penalty amount is the greater of:

• 5% of any tax liability which would have been shown in the tax return in question (had you made it to us); and
• £300,

unless, by failing to make the return, you are deliberately withholding information which would enable or assist us to assess your tax liability, in which case the penalty amount is the greater of:

• 100% of any tax liability which would have been shown in the tax return in question (had you made it to us); and
• £300.

You are liable to the 6 month and 12 month further penalties even if we have not charged some or all of the previous penalties. For example, you can become liable to the six month further penalty even if we have not previously charged the initial fixed £100 penalty.