Finance Act 2021

PART 1 Introduction

Introduction

1 This Schedule makes provision for penalties to be payable by a person who, in relation to a tax dealt with by one of the following tables, fails to pay an amount specified in column 2 of the table (“the tax due”) on or before the date specified in column 3 of the table (“the specified date”).

Income tax or capital gains tax

1	Amount of income tax or capital gains tax payable under section 55 of TMA 1970	The date determined in accordance with section 55 of TMA 1970 as the date by which the amount must be paid
2	Amount of income tax or capital gains tax payable under section 59B(3) or (4) of TMA 1970	The date specified in section 59B(3) or (4) of TMA 1970 as the date by which the amount must be paid
3	Amount of income tax or capital gains tax payable under section 59B(5) or (6) of TMA 1970	The date specified in section 59B(5) or (6) of TMA 1970 as the date by which the amount must be paid
4	Amount of income tax or capital gains tax payable under section 59B(5A) of TMA 1970	The date specified in section 59B(5A) of TMA 1970 as the date by which the amount must be paid
5	Amount of income tax or capital gains tax payable under section 59BA(4) or (5) of TMA 1970	The date specified in section 59BA(4) or (5) of TMA 1970 as the date by which the amount must be paid
6	Amount of income tax payable under regulations under section 244L(2)(a) of FA 2004	The due date determined by or under the regulations
7	Amount of income tax shown in a return under section 254(1) of FA 2004	The date specified in section 254(5) of FA 2004 as the date by which the amount must be paid
8	Amount of income tax or capital gains tax (not within item 4) shown in an assessment or determination made by HMRC in default of a return (see paragraph 3)	The date by which the amount would have been required to be paid if it had been shown in the return in question
9	Amount of income tax or capital gains tax (not within item 1 or 3) shown in an amendment or correction of a return	The later of— (a) the date by which the amount must be paid, and (b) the date on which the amendment or correction is made
10	Amount of income tax or capital gains tax (not within item 1 or 3) shown in an assessment or determination made by HMRC otherwise than in default of a return (see paragraph 3)	The later of— (a) the date by which the amount must be paid, and (b) the date on which the assessment or determination is made

Value added tax

1	Amount of value added tax payable under section 25(1) of VATA 1994 (except an amount within item 2, 3, 4 or 5)	The date determined by or under regulations under section 25 of VATA 1994 as the date by which the amount must be paid
2	Amount of value added tax payable under section 25(1) of VATA 1994 which is an instalment of an amount due in respect of a period of 9 months or more (“amount A”)	The date by which any balancing payment, or other outstanding payment due in respect of amount A, must be paid
3	Amount of value added tax shown in an assessment made by HMRC in default of a return (see paragraph 3)	The date by which the amount would have been required to be paid if it had been shown in the return in question
4	Amount of value added tax shown in an amendment or correction of a return	The date falling 30 days after the date on which the amendment or correction is made
5	Amount of value added tax shown in an assessment made by HMRC otherwise than in default of a return (see paragraph 3)	The date falling 30 days after the date on which the assessment is made

2 In this Schedule, “HMRC” means Her Majesty’s Revenue and Customs.

Assessments and determinations in default of return

3 (1) This paragraph applies for the interpretation of the tables in paragraph 1.

(2) An assessment or determination by HMRC is made in default of a return if it is made where—

(a) a person is required to make or deliver a return which falls within—

(i) any group of returns in the Table in paragraph 2 of Schedule 24, or

(ii) any item in the Table in paragraph 1 of Schedule 55 to FA 2009,

(b) that person fails to make or deliver the return on or before the date by which it is required to be made or delivered, and

(c) if the return had been made or delivered as required, the return would have shown that an amount falling within the relevant table in paragraph 1 was due and payable.

(3) An assessment or determination by HMRC is made otherwise than in default of a return if it is made otherwise than as described in sub-paragraph (2).