RCB/30/10 New penalty for failure to notify

Part V16 Forms and other HMRC material

RCB/30/10 New penalty for failure to notify

RCB/30/10 New penalty for failure to notify

Revenue & Customs Brief, Issue 30. 18 June 2010


This Business Brief explains the failure to notify penalty contained in Sch 41 of the 2008 Finance Act (FA 2008) which from 1 April 2010 can be applied to most taxes. There is full guidance on this penalty at CH70000 and CH500000 in the Compliance Handbook.

From 1 April 2010 the penalty could be applied to a failure to notify for:

Aggregates LevyClimate Change LevyInsurance Premium Tax
Air Passenger DutyCorporation TaxLandfill Tax
Alcoholic Liquor DutyExcise DutiesLottery Duty
Amusement MachineGaming DutyPool Betting Duty
Licence DutyGeneral Betting DutyRemote Gaming Duty
Bingo DutyHydrocarbon Oils DutyTobacco Products Duty
Capital Gains Tax Income TaxVAT


Under the review of HMRC's powers, deterrents and safeguards legislation has been introduced to align and modernise the framework under which we administer the taxes and duties formerly handled by Customs and Excise and the Inland Revenue.

We inherited a number of different penalty regimes from Customs and Excise and the Inland Revenue. The law and practice relating to penalties varied not only between the two former departments but also between the various taxes and duties for which each department was responsible.

Finance Act 2007 (s 97 and Sch 24) introduced a simpler and more consistent penalty system for inaccuracies in tax returns and other documents.

Finance Act 2008 (s 123 and Sch 41) has extended and adapted the new penalty framework to introduce:


    —     A standard penalty across most our taxes where a customer fails to register or notify

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