»Ê¹ÚÌåÓýapp

A single penalty is chargeable in respect of a notification requirement. Where there are multiple failures in respect of a notification requirement only one penalty is chargeable.

»Ê¹ÚÌåÓýapp penalty amount varies according to whether it is:

• a first failure, resulting in a penalty of £5,000, where the company or partnership has not, in any of the preceding three financial years, been assessed to a notification penalty in respect of the same relevant tax.
• a second failure, resulting in a penalty of £25,000, where the company or partnership has been assessed to a first failure notification penalty and not already incurred a second penalty in the preceding three financial years in respect of the same relevant tax.
• a further failure, resulting in a penalty of £50,000, where the company or partnership has been assessed to a second penalty or further failure penalty in the preceding three financial years in respect of the same relevant tax.

Example

»Ê¹ÚÌåÓýapp table below illustrates how the first failure, second failure and further failure penalties operate.

Financial Year End	VAT	Corporation tax	PAYE	Income Tax Self-Assessment
30 Sep 2023	First Failure Penalty £5,000	First Failure Penalty £5,000	Notification requirements met	Notification requirement met
30 Sep 2024	Notification requirements met	Notification requirements met	Notification requirements met	Notification requirement met
30 Sep 2025	Second Failure Penalty £25,000	Notification requirements met	First Failure Penalty £5,000	Notification requirement met
30 Sep 2026	Notification requirements met	Notification requirements met	Notification requirements met	Notification requirement met
30 Sep 2027	Further Failure Penalty £50,000	Notification requirements met	Notification requirements met	Notification requirement met
30 Sep 2028	Notification requirements met	First Failure Penalty £5,000	Second Failure Penalty £25,000	Notification requirement met
30 Sep 2029	Notification requirements met	Notification requirements met	Notification requirements met	Notification requirement met
30 Sep 2030	Further Failure Penalty £50,000	Second Failure Penalty £25,000	Notification requirements met	Notification requirement met

If a penalty is chargeable that is the amount of the penalty. »Ê¹ÚÌåÓýappre is no reduction available for any reason.

If there has been a failure but there is a reasonable excuse for the failure, there will be no penalty. However, there can be no reasonable excuse for a notification failure that results from careless or deliberate behaviour.