(1) A person may appeal against any of the following decisions—
(a) a decision of an officer of Revenue and Customs that a penalty is payable under sections 194 to 197, and
(b) a decision of an officer of Revenue and Customs as to the amount of a penalty under sections 194 to 197.
(2) Paragraph 48 of Schedule 36 to FA 2008 (procedure on appeal against penalty) applies to appeals under this section as it applies to appeals under paragraph 47 of that Schedule (and references to paragraph 47(1)(a) and (b) in paragraph 48 are to be read as references to subsection (1)(a) and (b) of this section).
(1) In this Chapter—
“arrangements” includes any agreement, scheme, arrangement or understanding of any kind whether or not legally enforceable involving one or more transactions;
“authorised officer of Revenue and Customs” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purpose of this Chapter;
“Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;
“document” includes any part of a document (and see subsection (2));
“HMRC” means His Majesty’s Revenue and Customs;
“information” includes a document (and see subsection (2));
“information notice” means a notice issued under any of sections 179 to 183;
“investigation of tax avoidance” includes the exercise of a function under an anti-avoidance enactment;
“recipient”, in relation to a notice, means the person to whom the notice is issued;
“tribunal” means the First-tier Tribunal or, where determined by or under the Tribunal Procedure Rules, the Upper Tribunal.
(2) For the purposes of this Chapter—
(a) a reference to providing information includes a reference to producing documents;
(b) a reference to a document is a reference to anything in which information of any description is recorded.
(3) Paragraphs 7(2) to (4), 8, 15 and 16 of Schedule 36 to FA 2008 (provision relating to documents) apply in relation to documents required under this Chapter as they apply in relation to documents required under that Schedule.
The following provisions of TMA 1970 apply for the purposes of this Chapter as they apply for the purposes of the Taxes Acts—
(a) section 108 (responsibility of officers);
(b) section 114 (want of form);
(c) section 115 (delivery and service of documents).
(1) Section 272A of FA 2014 is repealed.
(2) Subsection (1) comes into force on such day as the Treasury may by regulations made by statutory instrument appoint.
209 Declaration in relation to privileged material
(1) Subsection (2) applies where—
(a) HMRC have notified a lawyer that they intend to publish, or are considering publishing, information identifying the lawyer under a provision listed in subsection (5), and
(b) the lawyer—
(i) intends to make representations to the effect that the information should not be published, but
(ii) will not be able to substantiate some or all of those representations without disclosing the content of privileged communications.
(2) A lawyer (whether or not the lawyer intending to make the representations) may make a declaration to the effect that—
(a) the representations are true, and
(b) the content of privileged communications would be sufficient (whether alone or with other information) to demonstrate this on the balance of probabilities.
(3) When considering whether the information referred to in subsection (1)(a) may be published, HMRC and, in the context of proceedings, a court or tribunal must treat a declaration made under subsection (2) and provided under a provision listed in subsection (5) as conclusive evidence of the information included in the declaration.
(4) But subsection (3) does not apply if HMRC, or the court or tribunal, is satisfied that the declaration includes any information that is incorrect.
(5) The provisions are—
(a) section 316C of FA 2004 (disclosure of tax avoidance schemes);
(b) paragraph 36 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes);
(c) section 86 of FA 2022 (publication of information about tax avoidance schemes).
(6) For the purposes of this section—
(a) references to a lawyer are references to a person in respect of whose communications a claim to legal professional privilege, or (in Scotland) to confidentiality of proceedings as between client and professional legal adviser, could be maintained in legal proceedings, and
(b) a communication is “privileged” if such a claim could be maintained in respect of it.
(7) In this section—
“HMRC” means—
where the provision referred to in subsection (1)(a) is section 316C of FA 2004, HMRC as defined for the purposes of that section;
where the provision referred to in subsection (1)(a) is paragraph 36 of Schedule 17 to F(No.2)A 2017, HMRC as defined for the purposes of that paragraph;
where the provision referred to in subsection (1)(a) is section 86 of FA 2022—
in subsection (1)(a), an officer of Revenue and Customs;
in subsections (3) and (4), an authorised officer as defined for the purposes of that section;
“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
(8) The Commissioners for His Majesty’s Revenue and Customs may by regulations make provision about—
(a) the form of a declaration made under subsection (2),
(b) the information to be included in a declaration,
(c) when and how a declaration is to be provided.
(9) Regulations under this section—
(a) are to be made by statutory instrument, and
(b) may make different provision for different purposes.
(10) A statutory instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the House of Commons.
(1) A person who makes a declaration under section 209(2) and carelessly or deliberately includes any incorrect information in the declaration is liable to a penalty not exceeding £10,000.
(2) Where—
(a) a person (“A”) provides a declaration under a provision listed in section 209(5) which is made under section 209(2) by another person,
(b) the declaration includes incorrect information, and
(c) A knew, or could reasonably have been expected to have known, that the information was incorrect,
A is liable to a penalty not exceeding £10,000.
(3) For the purposes of subsection (1), incorrect information is included in a declaration carelessly if the person who makes the declaration has failed to take reasonable care to verify the information before including it.
(1) Subject to subsection (2), a penalty under section 210 is to be treated as a penalty imposed under the Taxes Acts and, accordingly, is a penalty to be determined and imposed by an authorised officer under section 100(1) of TMA 1970.
(2) A penalty under section 210 is not required to be paid before the penalty becomes final.
(3) For the purposes of subsection (2) and sections 212 and 213 a penalty becomes “final” at the time when the period for any appeal or further appeal relating to the penalty expires or, if later, when any appeal or final appeal relating to the penalty is finally determined.
212 Publication following an incorrect declaration
(1) An authorised officer may publish information about a person where—
(a) the person has incurred a penalty under section 210 in relation to a declaration, and
(b) the penalty has become final.
(2) The information that may be published under this section is—
(a) the person’s name (including any trading name, previous name or pseudonym);
(b) any address used by the person;
(c) any other information that the authorised officer considers appropriate for the purposes of identifying the person or their business;
(d) details of the arrangements to which the declaration relates including the nature of the person’s involvement in those arrangements;
(e) details of the penalty imposed on the person under section 210.
(3) The information may be published in any way that the authorised officer considers appropriate.
(4) Before publishing information under this section, the authorised officer must—
(a) notify the person that they are considering doing so,
(b) give the person 30 days from that notification in which to make representations about whether it should be published, and
(c) have regard to any representations received.
(5) In this section—
“arrangements” means—
in relation to a declaration provided under section 316C(6)(b)(ii) of FA 2004, arrangements or proposed arrangements, with those terms having the same meaning as in that section;
in relation to a declaration provided under paragraph 36(6)(b)(ii) of Schedule 17 to F(No.2)A 2017, arrangements or proposed arrangements, with those terms having the same meaning as in that paragraph;
in relation to a declaration provided under section 86(5)(b)(ii) of FA 2022, a proposal or arrangements, with those terms having the same meaning as in that section;
“authorised officer” means an officer of Revenue and Customs authorised for the purposes of this section.
(1) Publication of any information under section 212 on the basis of a penalty incurred by a person may not take place after the end of the period of 12 months beginning with the date on which the penalty became final.
(2) Subsection (1) is not to be taken to prevent the re-publication, or continued publication, after the end of the period referred to in that subsection, of information published under section 212 before the end of the period.
214 Amendments to existing legislation: removal of privilege exemption
(1) In section 316C of FA 2004 (disclosure of tax avoidance schemes)—
(a) omit subsection (4A);
(b) in subsection (6)(b)—
(i) the words from “make representations” to the end become sub-paragraph (i);
(ii) after that sub-paragraph insert
, and
(ii) where section 209(2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.
.
(2) In paragraph 36 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes)—
(a) omit sub-paragraph (4A);
(b) in sub-paragraph (6)(b)—
(i) the words from “make representations” to the end become sub-paragraph (i);
(ii) after that sub-paragraph insert
, and
(ii) where section 209(2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.
.
(3) In section 86 of FA 2022 (publication of information about tax avoidance schemes)—
(a) omit subsection (3)(b) (and the “or” before it);
(b) in subsection (5)(b)—
(i) the words from “make representations” to the end become sub-paragraph (i);
(ii) after that sub-paragraph insert
, and
(ii) where section 209(2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.
;
(c) in subsection (6), after “representations” insert “and any declaration”.
(1) Subject to subsection (2), sections 209 to 214 have effect from the day on which this Act is passed.
(2) The amendments made by section 214 have effect only in relation to conduct occurring on or after the day on which this Act is passed.
216 Penalties for non-disclosure of tax avoidance schemes
(1) In TMA 1970—
(a) omit section 98C (notifications under Part 7 of FA 2004);
(b) in section 100(2) (determination of penalties by an officer of the Board), omit paragraph (f);
(c) in section 103A (interest on penalties), omit “(other than section 98C)”.
(2) In Part 7 of FA 2004 (disclosure of tax avoidance schemes)—
(a) in section 313(4), for “98C of the Taxes Management Act 1970” substitute “315”;
(b) for section 315 substitute—
Penalties
315 (1) A person who fails to comply with a duty imposed by a provision mentioned in the first column of the table is liable to a penalty not exceeding the amount specified in relation to that provision in the second column.
Provision | Maximum penalty amount
Section 308(1) or (3) (promoter’s duty to notify) | The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 309(1) (client’s duty to notify: no UK promoter) | The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 310 (client’s duty to notify: no promoter) | The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 310A (duty to provide further information) | The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 310C (promoter’s duty to update information) | £5,000
Section 311C (duty to provide further information: section 311(3) case) | The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 312(2) (promoter’s duty to notify client of SRN) | £5,000
Section 312ZA(2) (duty to notify client of SRN: section 311(3) case) | £5,000
Section 312A(2) or (2A) (client’s duty to notify other persons of SRN) | £5,000
Section 312B (client’s duty to provide client information to promoter or service provider) | £5,000
Section 313(1) or regulations under section 313(3) (other party’s duty to provide information) | The amount specified in subsection (4)
Section 313ZA (promoter’s or service provider’s duty to provide client information) | £5,000
Section 313ZB (service provider’s duty to provide other party’s information) | £5,000
Section 313ZC (employer’s duty to provide employee information) | £5,000
Section 313A (duty to provide statement on notifiability) | £5,000
Section 313B (duty to provide supporting evidence on notifiability) | £5,000
Section 313C (introducer’s duty to provide other person’s information) | £5,000
Section 316A (duty to provide information in addition to SRN to client or other persons) | £5,000
(2) The “applicable rate” means—
(a) £600, or
(b) where an order has been made under section 306A or 314A (orders about notifiability) in respect of the arrangements or proposal in relation to which the person fails to comply—
(i) £600 for each day falling before the end of the period of ten days beginning with the day on which the order was made, and
(ii) £5,000 for each day falling after the end of that period.
(3) This subsection applies where an authorised officer considers that the amount otherwise specified in relation to the provision is inappropriately low.
(4) The amount specified for section 313(1) or regulations under section 313(3) is—
(a) £10,000, if the person has failed to comply with the section or regulations on two or more other occasions during the period of 36 months ending with the date of the current failure,
(b) £7,500, if the person has failed to comply with the section or regulations on one other occasion during the period of 36 months ending with the date of the current failure, or
(c) £5,000, in any other case.
(5) In subsection (1), a reference to a day on which a person fails to comply with a duty is a reference to a day that—
(a) begins after the day by which the person was required to comply with the duty, and
(b) ends before the earlier of—
(i) the day on which the person complies with the duty,
(ii) the day on which any reference number is allocated to the arrangements or proposed arrangements concerned in the circumstances described in subsection (6), and
(iii) the day on which a penalty under subsection (1) is imposed in relation to the failure.
(6) The circumstances are—
(a) the duty referred to in subsection (5) is a duty imposed by section 308(1) or (3), 309(1) or 310, and
(b) it is a case within section 311(3).
Further penalties
315A (1) If—
(a) a penalty under section 315 is imposed in relation to a person’s failure to comply with a duty, and
(b) after the penalty has been imposed, the person continues to fail to comply with the duty,
the person is liable to a further penalty not exceeding the applicable rate (as defined in section 315(2)) for each day on which the failure continues.
(2) Subsection (1) does not apply to a failure to comply with a duty imposed by section 313(1) or regulations under section 313(3).
Determination of penalties
315B (1) A penalty under this Part is to be treated as a penalty under a provision of the Taxes Acts and, accordingly, is a penalty to be determined and imposed by an authorised officer under section 100(1) of TMA 1970.
(2) In determining an amount of a specified penalty (including considering whether an amount is inappropriately low under section 315(3)), the authorised officer must have regard to all relevant considerations, including—
(a) the desirability of the penalty being set at a level which appears appropriate for deterring the person, or other persons, from similar failures to comply on future occasions;
(b) the amount of any fees received, or likely to have been received, by the person in connection with the proposal or arrangements concerned;
(c) in the case of a person entering into the arrangements, the amount of any advantage gained, or sought to be gained, by that person.
(3) In this section, a “specified penalty” is a penalty under section 315 that is imposed in relation to a person’s failure to comply with a duty imposed by section 308(1) or (3), 309(1), 310, 310A or 311C.
Failure to comply with time limit
315C A failure to do anything required to be done within a limited period of time does not give rise to liability to a penalty under section 315 or 315A if the person did it within such further time, if any, as an officer of Revenue and Customs or the tribunal may have allowed.
Other exemptions from liability to a penalty
315D (1) A person is deemed not to have failed to comply with a duty imposed by a provision mentioned in the first column of the table in section 315(1) if the person had a reasonable excuse for the failure and—
(a) the reasonable excuse continues to apply, or
(b) the reasonable excuse has ceased to apply, but the person complied with the duty without unreasonable delay after the cessation.
(2) Where an order is made under section 306A or 314A—
(a) the order is not evidence that a person either does or does not have a reasonable excuse for non-compliance before the order was made, and
(b) the person identified in the order as the promoter cannot rely on doubt as to notifiability as a reasonable excuse for a failure to comply with section 308.
(3) Where a person fails to comply with—
(a) section 309 and the promoter for the purposes of that section is a monitored promoter, or
(b) section 310 and the arrangements for the purposes of that section are arrangements of a monitored promoter,
then any legal advice which was given or procured by that monitored promoter and which the person took into account is to be disregarded in determining whether the person has a reasonable excuse for the failure.
(4) In determining whether or not a person who is a monitored promoter has a reasonable excuse for a failure to do anything required to be done, reliance on legal advice does not constitute a reasonable excuse if either—
(a) the advice was not based on a full and accurate description of the facts, or
(b) the conclusions in the advice that the person relied on were unreasonable.
(5) For the purposes of this section, “monitored promoter” has the meaning given by section 244(5) of FA 2014.
Regulations to vary amounts
315E (1) The Treasury may by regulations make provision for the purpose of varying any of the amounts specified in section 315 or 315A.
(2) Regulations under this section—
(a) must be made by statutory instrument, and
(b) may not be made unless a draft has been laid before and approved by resolution of the House of Commons.
;
(c) in section 318, in the appropriate places insert—
“authorised officer” means an officer of Revenue and Customs authorised by His Majesty’s Revenue and Customs for the purposes of this Part or, as the case may be, section 100 of TMA 1970;
“Taxes Acts” has the same meaning as in TMA 1970 (see section 118(1) of that Act);
.
(3) In Part 2 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes)—
(a) in the cross heading before paragraph 39 omit “(apart from paragraph 26)”;
(b) for paragraphs 39 to 44 substitute—
39 (1) A person who fails to comply with a duty imposed by a provision of Part 1 of this Schedule mentioned in the first column of the table is liable to a penalty not exceeding the amount specified in relation to that provision in the second column.
Provision | Maximum penalty amount
Paragraph 11(1) or 12(1) (promoter’s duty to notify) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 17(2) (client’s duty to notify: no UK promoter) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 18(2) (client’s duty to notify: no promoter) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 19 (duty to provide further information) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 21 (promoter’s duty to update information) | £5,000
Paragraph 22C (duty to provide further information: paragraph 22(3) case) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 23(2) (promoter’s duty to notify client of SRN) | £5,000
Paragraph 23A(2) (duty to notify client of SRN: paragraph 22(3) case) | £5,000
Paragraph 24(3) (client’s duty to notify other persons of SRN) | £5,000
Paragraph 25(2) (client’s duty to provide client information to promoter or service provider) | £5,000
Paragraph 26(1) or regulations under paragraph 26(3) (other party’s duty to provide information) | The amount specified in sub-paragraph (4)
Paragraph 27(3) (promoter’s or service provider’s duty to provide client information) | £5,000
Paragraph 28 (service provider’s duty to provide other party’s information) | £5,000
Paragraph 29 (duty to provide statement on notifiability) | £5,000
Paragraph 30 (duty to provide supporting evidence on notifiability) | £5,000
Paragraph 31 (introducer’s duty to provide other person’s information) | £5,000
Paragraph 33 (duty to provide information in addition to SRN to client or other persons) | £5,000
(2) The “applicable rate” means—
(a) £600, or
(b) where an order has been made under paragraph 4 or 5 (orders about notifiability) in respect of the arrangements or proposal in relation to which the person fails to comply—
(i) £600 for each day falling before the end of the period of eleven days beginning with the day on which the order was made, and
(ii) £5,000 for each day falling after the end of that period.
(3) This sub-paragraph applies where an authorised officer considers that the amount otherwise specified in relation to the provision is inappropriately low.
(4) The amount specified for paragraph 26(1) or regulations under paragraph 26(3) is—
(a) £10,000, if the person has failed to comply with the paragraph or regulations on two or more other occasions during the period of 36 months ending with the date of the current failure,
(b) £7,500, if the person has failed to comply with the paragraph or regulations on one other occasion during the period of 36 months ending with the date of the current failure, or
(c) £5,000, in any other case.
(5) In sub-paragraph (1), a reference to a day on which a person fails to comply with a duty is a reference to a day that—
(a) begins after the day by which the person was required to comply with the duty, and
(b) ends before the earlier of—
(i) the day on which the person complies with the duty,
(ii) the day on which any reference number is allocated to the arrangements or proposed arrangements concerned in the circumstances described in sub-paragraph (6), and
(iii) the day on which a penalty under sub-paragraph (1) is imposed in relation to the failure.
(6) The circumstances are—
(a) the duty referred to in sub-paragraph (5) is a duty imposed by paragraph 11(1), 12(1), 17(2) or 18(2), and
(b) it is a case within paragraph 22(3).
(7) In this paragraph “authorised officer” means an officer of Revenue and Customs authorised by HMRC for the purposes of this paragraph.
40 (1) If—
(a) a penalty under paragraph 39 is imposed in relation to a person’s failure to comply with a duty, and
(b) after the penalty has been imposed, the person continues to fail to comply with the duty,
the person is liable to a further penalty not exceeding the applicable rate (as defined in paragraph 39(2)) for each day on which the failure continues.
(2) Sub-paragraph (1) does not apply to a failure to comply with a duty imposed by paragraph 26(1) or regulations under paragraph 26(3).
41 (1) In assessing the amount of a specified penalty (including considering whether an amount is inappropriately low under paragraph 39(3)), an authorised officer must have regard to all relevant considerations, including—
(a) the desirability of the penalty being set at a level which appears appropriate for deterring the person, or other persons, from similar failures to comply on future occasions;
(b) the amount of any fees received, or likely to have been received, by the person in connection with the proposal or arrangements concerned;
(c) in the case of a person entering into the arrangements, the amount of any advantage gained, or sought to be gained, by that person.
(2) In this paragraph—
(a) “authorised officer” means an officer of Revenue and Customs authorised by HMRC for the purposes of this paragraph;
(b) a “specified penalty” is a penalty under paragraph 39 that is imposed in relation to a person’s failure to comply with a duty imposed by paragraph 11(1), 12(1), 17(2), 18(2), 19 or 22C.
42 (1) The Treasury may by regulations make provision for the purpose of varying any of the amounts specified in paragraph 39 or 40.
(2) Regulations under this paragraph may include incidental or transitional provision.
;
(c) omit paragraph 45 and the cross heading before paragraph 45;
(d) in the italic cross heading before paragraph 46, omit “under paragraph 39(1)(b) or 44”;
(e) in paragraph 46(1), for “39(1)(b) or 44” substitute “39 or 40”;
(f) in paragraph 49(2)(a), for “prescribed period mentioned in paragraph 41” substitute “period mentioned in paragraph 39(2)(b)”.
(1) In Part 7 of FA 2004 (disclosure of tax avoidance schemes), in section 316C (publication by HMRC), omit subsections (6A) and (6B).
(2) In Part 1 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes), in paragraph 36 (publication by HMRC), omit sub-paragraphs (7) and (8).
(1) In paragraph 5 of Schedule 34 to FA 2014 (promoters of tax avoidance schemes: threshold conditions)—
(a) in sub-paragraph (3)(a), for “the tribunal” substitute “an authorised officer”;
(b) in sub-paragraph (4)(a)—
(i) at the beginning insert “on appeal,”;
(ii) for “section 118(2) of TMA 1970” substitute “section 315D(1) of FA 2004”;
(c) for sub-paragraph (6) substitute—
(6) For the purposes of this paragraph—
“appeal period” means—
the period during which an appeal could be brought against the determination of an authorised officer or the tribunal, as applicable, or
where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of;
“authorised officer” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by HMRC for the purposes of the provision concerned.
.
(2) In paragraph 5 of Schedule 13 to FA 2020 (joint and several liability of company directors), for sub-paragraph (6)(a) substitute—
(a) sections 315 and 315A of FA 2004 (penalties for non-disclosure of tax avoidance schemes);
.
(3) In section 132A(2) of the Social Security Administration Act 1992 (disclosure of contributions avoidance arrangements)—
(a) in paragraph (a), at the end insert “or to a penalty under that Part”;
(b) in paragraph (b)—
(i) for “section 98C of the Taxes Management Act 1970 (penalties for failure to comply with Part 7 of the Finance Act 2004) and any other” substitute “any”;
(ii) for “that section” substitute “Part 7 of the Finance Act 2004”.
(4) In FA 2022—
(a) in section 90(3) (freezing orders: interpretation etc)—
(i) omit paragraph (a);
(ii) omit paragraph (d);
(b) in Schedule 13 (penalties for facilitating avoidance schemes involving non-resident promoters), in paragraph 1(4), for paragraph (a) substitute—
(a) section 315 or 315A of FA 2004 (disclosure of tax avoidance schemes);
.
The amendments made by sections 216 and 218 do not have effect in relation to a penalty for which proceedings have been commenced under section 100C TMA or paragraph 45 of Schedule 17 to F(No.2)A 2017 before sections 216 and 218 come into force.
(1) Chapter 3 of Part 3 of FA 2004 (construction industry scheme) is amended as follows.
(2) After section 62 insert—
Liability for things done in the knowledge of deliberate failures to comply
Payments made in the knowledge of deliberate failures to comply
62A (1) This section applies to a person who—
(a) has made a payment under a construction contract, and
(b) before making a payment, knew or should have known that a connected party had deliberately failed, or would deliberately fail, to comply with a requirement to—
(i) deduct a sum under section 61,
(ii) pay a sum to the Commissioners under section 62, or
(iii) deduct or pay an amount to His Majesty’s Revenue and Customs under PAYE regulations.
(2) If this section applies, an officer of Revenue and Customs may determine that the person is liable to pay to the Commissioners an amount equal to 20% of the payment referred to in subsection (1).
(3) In this section, a “connected party” is
(a) another party to the construction contract referred to in subsection (1)(a), or
(b) a party to another construction contract relating to the same construction operations as the construction contract referred to in subsection (1)(a).
Returns made in the knowledge of deliberate failures to comply
62B (1) This section applies to a person who—
(a) makes a return which treats a sum as deducted and paid on account of the person’s liabilities under section 62(2) or (3), and
(b) before doing so, knew or should have known that the sum—
(i) had not been deducted, or
(ii) had deliberately not been, or would deliberately not be, paid on account of the person’s liabilities.
(2) If this section applies, an officer of Revenue and Customs may determine that the person is liable to pay to the Commissioners an amount equal to the sum which the return treats as paid on account of the person’s liabilities.
Regulations
62C The Commissioners may make regulations with respect to the determination, collection and recovery of amounts described in sections 62A(2) and 62B(2).
.
(3) In section 66—
(a) after subsection (3) insert—
(3A) The Commissioners may at any time make a determination cancelling a person’s registration for gross payment if—
(a) section 62A (payments made in the knowledge of deliberate failures to comply), or
(b) section 62B (returns made in the knowledge of deliberate failures to comply),
applies to the person.
;
(b) in subsection (4)—
(i) for “the Board” substitute “the Commissioners”;
(ii) after “subsection (3)” insert “or subsection (3A)”;
(c) in subsection (6)—
(i) the words from “the person must” to the end become paragraph (a);
(ii) after that paragraph insert
, and
(b) the person may not, within the period of one year beginning with the day on which the cancellation takes effect (see subsection (2) and section 67(5)), apply for registration for gross payment.
;
(d) in subsection (7)—
(i) after “subsection (3)” insert “or subsection (3A)”;
(ii) for the words from “the person may” to the end substitute—
(a) the person may, if the Commissioners think fit, be registered for payment under deduction, and
(b) the person may not, within the period of five years beginning with the day on which the cancellation takes effect (see subsection (4)), apply for registration for gross payment.
;
(e) omit subsection (8).
(4) In section 72, in the heading, at the end insert “: false statements and documentation”.
(5) After section 72 insert—
Penalties: deliberate failures to comply
72A (1) A person is liable to a penalty not exceeding 30% of any amount that they are determined to be liable to pay under section 62A (payments made in the knowledge of deliberate failures to comply) or 62B (returns made in the knowledge of deliberate failures to comply).
(2) A penalty under this section may not be determined more than three years after the date on which the determination under section 62A or 62B becomes final.
(3) For the purposes of subsection (2) and section 72B(3), a determination becomes final at the time when the period for any appeal or further appeal relating to the determination expires or, if later, when any appeal or final appeal relating to the penalty is finally determined.
(4) Section 103(4) TMA 1970 (time limits) does not apply to a penalty under this section.
Penalties under section 72A: officers’ liability
72B (1) Where—
(a) a company is liable to a penalty under section 72A, and
(b) the actions of the company which give rise to that liability were attributable to an officer of the company,
the officer is liable to pay such portion of the penalty (which may be equal to or less than 100%) as the Commissioners may specify in a notice given to the officer (a “decision notice”).
(2) Before giving the officer a decision notice, the Commissioners must—
(a) inform the officer that they are considering doing so, and
(b) afford the officer the opportunity to make representations about whether a decision notice should be given or the portion that should be specified.
(3) A decision notice—
(a) may not be given before the amount of the penalty due from the company has been determined (but it may be given immediately after that has happened), and
(b) may not be given more than three years after the date on which the determination mentioned in section 72A(1) becomes final.
(4) Where the Commissioners have specified a portion of the penalty in a decision notice given to the officer—
(a) the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,
(b) the specified portion shall be recoverable as if it were tax due from the officer, and
(c) a further decision notice may be given in respect of a portion of any additional penalty for which the company is determined to be liable.
(5) The Commissioners may not recover more than 100% of the penalty through issuing decision notices in relation to two or more persons.
(6) A person is not liable to pay an amount by virtue of this section if the actions of the company concerned are attributable to the person by reference to conduct for which the person has been convicted of an offence.
In this subsection “conduct” includes omissions.
(7) In this section and section 72C—
“company” means a body corporate or unincorporated association;
“officer” means—
in relation to a body corporate other than one whose affairs are managed by its members—
a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, or
a shadow director within the meaning of section 251 of the Companies Act 2006;
in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—
a member who exercises management functions with respect to it, or purports to do so, or
in the case of a limited liability partnership, a shadow member;
in relation to an unincorporated association, a person who exercises functions of management with respect to it, or purports to do so;
“shadow member” means a person in accordance with whose directions or instructions the members of a limited liability partnership are accustomed to act, save that a person is not a shadow member by reason only of the fact that the members act on advice given by that person in a professional capacity.
Appeals in relation to a decision notice under section 72B
72C (1) An officer may appeal—
(a) the decision to give a decision notice under section 72B, including on the grounds that the company is not liable to the penalty under section 72A to which the decision notice relates;
(b) the amount of the specified portion.
(2) Notice of an appeal must—
(a) state the ground of appeal, and
(b) be given in writing to HMRC before the end of the period of 30 days beginning with the day on which the decision notice was given to the officer.
(3) The provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this section as they have effect in relation to an appeal against an assessment to income tax.
(6) In section 75, at the end insert—
(4) In this Chapter “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs.
.
221 Construction industry scheme regulations: amendments
(1) The Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045) are amended as follows.
(2) After regulation 13 insert—
Determination of amounts payable as a result of things done in the knowledge of deliberate failures to comply and appeal against determination
13A. (1) This regulation applies if a determination is made under section 62A(2) (payments made in the knowledge of deliberate failures to comply) or 62B(2) (returns made in the knowledge of deliberate failures to comply) of the Act.
(2) An officer of Revenue and Customs must serve notice of the determination on the person to whom it relates.
(3) The determination may cover one or more amounts the person is liable to pay under section 62A(2) or 62B(2) of the Act.
(4) The determination is subject to Parts 4, 5, 5A and 6 of TMA (assessment, appeals, collection and recovery) as if—
(a) the determination were an assessment, and
(b) the amount determined were income tax charged on the person,
and those Parts of that Act apply accordingly with any necessary modifications, except that the amount determined is due and payable 14 days after the determination is made.
(3) In regulation 16—
(a) in paragraph (1)—
(i) the words from “a contractor” to the end become paragraph (a);
(ii) after that paragraph insert
, or
(b) a person is liable to pay under regulation 13A(2).
;
(b) in paragraph (3), in Table 1, in the first row, for “and 13(2)” substitute “, 13(2) and 13A(2)”.
(1) Subject to subsection (2), the amendments made by sections 220 and 221 have effect from 6 April 2026.
(2) The amendments made by section 220(3)(d)(ii) and 220(3)(e)have effect in relation to a determination under section 66(3) of FA 2004 if the determination is made by reference to behaviour occurring on or after 6 April 2026.
223 Prohibition against unregistered tax advisers interacting with HMRC
(1) A tax adviser may not interact with HMRC in relation to the tax affairs of a client unless—
(a) the adviser is registered under this Chapter, or
(b) an exception in Schedule 20 (exceptions) applies.
(2) A person interacts with HMRC if the person does or attempts to do any of the following—
(a) contact HMRC by telephone, post or email;
(b) send a message to HMRC through a website or internet portal;
(c) file a return, claim, notice or other document with HMRC (whether electronically or otherwise);
(d) communicate with HMRC in any other way.
(3) Subsection (1) applies even if the tax adviser or the client (or both) are outside the United Kingdom.
(4) Where an individual—
(a) works for a tax adviser, and
(b) interacts with HMRC in the course of a business carried on by that tax adviser,
the interaction is to be regarded as being carried out by that tax adviser.
(1) In this Chapter “tax adviser” means—
(a) an organisation that, in the course of a business carried on by it, assists other persons with their tax affairs, or
(b) an individual who, in the course of a business carried on by the individual as a sole trader, assists other persons with their tax affairs.
(2) An organisation or individual assists another person with their tax affairs if the organisation or individual does any of the following—
(a) advises the other person in relation to tax;
(b) acts or purports to act as an agent on behalf of the other person in relation to tax;
(c) provides assistance with any document that is likely to be relied on by HMRC to determine the other person’s tax position.
(3) A person can be a tax adviser even if they are appointed indirectly (for example, at the request of someone other than their client).
(4) In this Chapter “client”, in relation to a tax adviser, means a person who the adviser, in the course of a business carried on by the adviser, assists with their tax affairs.
(1) A tax adviser may apply to HMRC to be registered under this Chapter.
(2) An application must be made in the form and manner specified in a notice published by HMRC.
(3) An application must contain the following—
(a) the name and address of the tax adviser;
(b) if the tax adviser is an organisation, the name of each of the tax adviser’s relevant individuals (see section 226 (meaning of “relevant individual” etc));
(c) a statement—
(i) that the tax adviser meets the registration conditions (see section 227 (registration conditions)), or
(ii) explaining why those conditions are not met;
(d) any other information or evidence relating to the tax adviser or the registration conditions that may be specified in a notice published by HMRC.
(4) A notice under subsection (3)(d) may, in particular, specify different types of information or evidence for different descriptions of tax advisers (for example, for tax advisers who are established in, or who otherwise have a connection with, a territory outside the United Kingdom).
226 Meaning of “relevant individual” and “officer”
(1) For the purposes of this Chapter “relevant individual”, in relation to a tax adviser that is an organisation with fewer than six officers, means—
(a) each individual who works for the tax adviser and who plays a significant role in—
(i) the making of decisions about how the whole or a substantial part of the tax adviser activities of the organisation are to be managed or organised, or
(ii) the actual managing or organising of the whole or a substantial part of those activities, and
(b) each officer of the tax adviser who is not within paragraph (a).
(2) For the purposes of this Chapter “relevant individual”, in relation to a tax adviser that is an organisation with six or more officers, means—
(a) each individual who works for the tax adviser and who plays a significant role in—
(i) the making of decisions about how the whole or a substantial part of the tax adviser activities of the organisation are to be managed or organised, or
(ii) the actual managing or organising of the whole or a substantial part of those activities, and
(b) if the organisation has fewer than five officers within paragraph (a), each officer of the tax adviser nominated by the adviser to be a relevant individual (see section 227(4) (registration conditions)).
(3) In this Chapter “officer” means—
(a) in relation to a company, a director;
(b) in relation to a body corporate whose affairs are managed by its members, a member who exercises functions of management with respect to it;
(c) in relation to a body corporate not within paragraph (a) or (b), an officer of the body whose functions correspond to those of a director of a company;
(d) in relation to a partnership, a partner;
(e) in relation to any other organisation, a person who exercises functions of management with respect to it.
(1) A reference in this Chapter to the registration conditions is to the following three conditions.
(2) The first registration condition is that the tax adviser and, if the adviser is an organisation, each of the adviser’s relevant individuals—
(a) does not have a relevant amount overdue or a relevant return outstanding,
(b) is not subject to a decision by HMRC to refuse to deal with them,
(c) is not subject to a relevant anti-avoidance measure,
(d) has not, in the previous 12 months, had a relevant anti-avoidance penalty imposed on them,
(e) is not subject to a relevant suspension or a relevant ineligibility order,
(f) is not disqualified under the directors disqualification legislation or subject to a similar disqualification in a territory outside the United Kingdom,
(g) does not have an insolvency practitioner acting in relation to them, and
(h) does not have an unspent conviction for a relevant offence (see section 229 (offences)).
(3) The second registration condition is that the adviser—
(a) is registered with a supervisory authority for the purposes of anti-money laundering supervision, or
(b) meets such conditions about applying to register with a supervisory authority for those purposes as may be specified in a notice published by HMRC.
(4) The third registration condition is that, if the adviser is an organisation within section 226(2)(b) (organisations with six or more officers etc), the adviser has nominated as many officers to be relevant individuals as are necessary to ensure that the adviser has at least five relevant individuals who are officers.
(1) In section 227 and this section, “relevant amount”, other than in relation to a person within subsection (2), means an amount of—
(a) tax payable to HMRC;
(b) national insurance contributions;
(c) devolved tax corresponding to a tax payable to HMRC or to national insurance contributions;
(d) a civil penalty relating to a tax mentioned in paragraph (a) or (c) or to national insurance contributions;
(e) a civil penalty (not within paragraph (d)) relating to an obligation contained in a provision made by or under any enactment relating to tax;
(f) interest on an amount within paragraphs (a) to (e).
(2) A person is within this subsection if, in the previous 12 months, the person—
(a) was not liable to pay an amount within subsection (1)(a) to (f), and
(b) was liable to pay an amount corresponding to an amount within subsection (1)(a) to (f) under the law of a territory outside the United Kingdom.
(3) In relation to a person within subsection (2), “relevant amount” means an amount corresponding to an amount within subsection (1)(a) to (f) that the person is liable to pay—
(a) under the law of the territory mentioned in subsection (2)(b), or
(b) if the person was, during the 12-month period, liable to pay such an amount under the law of more than one territory outside the United Kingdom, under whichever of those territories the person earned the most income in relation to tax adviser activities during the 12-month period.
(4) For the purposes of section 227(2)(a)—
(a) a relevant amount is overdue if the amount has become due and payable but the amount has not been paid;
(b) a relevant return is outstanding if the return is required to have been made or delivered but it has not been made or delivered.
(5) But a relevant amount is not overdue if it is subject to a time to pay agreement that has not been broken.
(6) For the purposes of section 227(2)(c), a person is subject to a “relevant anti-avoidance measure” if—
(a) the person is subject to a stop notice given under section 236A of FA 2014 (power to give stop notices);
(b) the person is subject to a monitoring notice given under section 244 of FA 2014 (monitoring notices: content and issuing);
(c) information about the person has been published under paragraph 46 of Schedule 16 of F(No.2)A 2017 (penalties for enablers of defeated tax avoidance) and the information has not been withdrawn;
(d) information identifying or about the person has been published under section 86(1) of FA 2022 (publication by HMRC of information about tax avoidance schemes) and the information has not been withdrawn.
(7) In section 227 and this section “relevant anti-avoidance penalty” means a penalty under any of the following—
(a) paragraph 2(1) of Schedule 35 to FA 2014 in respect of a failure to comply with section 236B(1) of that Act (stop notices);
(b) paragraph 1 of Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance);
(c) section 162 (ban on promotion of certain tax arrangements).
(8) For the purposes of section 227(2)(d), if a relevant anti-avoidance penalty is imposed on a person and the penalty is at any time subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not imposed on the person.
(9) For the purposes of section 227(2)(e), a person is subject to a relevant suspension if the person’s registration under this Chapter is suspended under section 232 (suspension of registration).
(10) In section 227 and this section—
“devolved tax” means a devolved tax within the meaning of the Scotland Act 1998 (see section 80A of that Act) or the Government of Wales Act 2006 (see section 116A of that Act);
“disqualified under the directors disqualification legislation” has the same meaning as in the Companies Act 2006 (see section 159A of that Act);
“insolvency practitioner” means—
a person who acts as an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986 or article 3 of the Insolvency (Northern Ireland) Order 1989, or
a person in a territory outside the United Kingdom who exercises functions similar to those of a person mentioned in paragraph (a);
“relevant ineligibility order” means a temporary or permanent ineligibility order issued under section 236 or 237 (ineligibility orders);
“relevant return” means a return relating to a relevant amount;
“supervisory authority” means—
a supervisory authority within the meaning given by regulation 3(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), or
an authority in a territory outside the United Kingdom which exercises functions similar to those of an authority mentioned in paragraph (a);
“time to pay agreement” means an agreement between HMRC and a person that payment of an amount may, subject to the person complying with any conditions determined by HMRC, be deferred for a period.
(1) The reference in section 227(2)(h) to a relevant offence is to any of the following offences—
(a) an offence under section 20BB of TMA 1970 (falsification of documents);
(b) an offence under CEMA 1979;
(c) an offence under section 112 (false representations for obtaining benefit) or section 114 (offences relating to contributions) of the Social Security Administration Act 1992;
(d) an offence under VATA 1994;
(e) an offence under section 35 of the Tax Credits Act 2002 (offence of fraud);
(f) an offence under CRCA 2005;
(g) an offence under section 45 or 46 of the Criminal Finances Act 2017 (failure to prevent facilitation of tax evasion offences);
(h) an offence at common law of cheating the public revenue;
(i) an offence under the law of any part of the United Kingdom consisting of being knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of tax;
(j) an offence of aiding, abetting, counselling or procuring the commission of an offence mentioned in paragraphs (a) to (i);
(k) an offence under the law of a territory outside the United Kingdom which would be an offence otherwise referred to in this section if the conduct constituting that offence was carried out in any part of the United Kingdom.
(2) For the purposes of subsection (1)(k), an act punishable under the law of a territory outside the United Kingdom constitutes an offence under that law, however it is described in that law.
(1) Where a tax adviser applies to be registered under this Chapter in accordance with section 225 (application for registration), an officer of Revenue and Customs must—
(a) decide whether to approve the application;
(b) notify the tax adviser of the decision and—
(i) where the application is approved, of the date from which the registration has effect, and
(ii) where the application is not approved, of the reasons for the decision.
(2) The officer must approve the application if satisfied that the tax adviser meets the registration conditions.
(3) The officer may otherwise approve the application only if—
(a) the tax adviser fails to meet the registration conditions solely by virtue of the adviser, or a relevant individual of the adviser, not meeting the condition in section 227(2)(a) (amount of tax etc overdue), and
(b) having regard to the relevant amount that is overdue or (as the case may be) the circumstances of the outstanding relevant return, the officer considers it appropriate to approve the application.
In this subsection “relevant amount” and “relevant return” have the same meaning as in section 227 (registration conditions).
(4) An officer of Revenue and Customs may cancel the registration of a registered tax adviser if—
(a) the adviser requests the cancellation, or
(b) the tax adviser has been wound up or dissolved or has died.
An officer of Revenue and Customs may by notice require a registered tax adviser to provide such information or evidence as the officer reasonably requires for the purpose of monitoring whether the tax adviser meets the registration conditions.
(1) An authorised officer of Revenue and Customs may, by notice, suspend the registration of a registered tax adviser if the officer is not satisfied that the adviser meets the registration conditions.
(2) An authorised officer of Revenue and Customs may, by notice, suspend the registration of a registered tax adviser for a period of up to 12 months if the officer considers that the adviser has, in the course of interacting with HMRC, behaved in a manner which falls below the standards that might reasonably be expected of a tax adviser in their interactions with HMRC.
(3) In considering whether a tax adviser has behaved as described in subsection (2), the officer may in particular have regard to any provisions of a relevant HMRC standard that relate to interactions between tax advisers and HMRC.
In this subsection “relevant HMRC standard” means a standard published by HMRC that is specified for the purposes of this section in a notice published by HMRC.
(4) Before suspending the registration of a registered tax adviser under this section, the officer must—
(a) notify the adviser of the fact that the officer considers subsection (1) or (2) to apply, and
(b) allow the adviser a period of—
(i) 30 days, or
(ii) if subsection (5) applies, 60 days,
beginning with the date of the notification, to take action to meet the conditions or to make representations to HMRC.
(5) This subsection applies where—
(a) the tax adviser is an individual and the officer considers subsection (1) to apply solely by virtue of the adviser not meeting the condition in section 227(2)(a) (amount of tax etc overdue), or
(b) the tax adviser is an organisation and the officer considers subsection (1) to apply solely by virtue of a relevant individual of the adviser not meeting the condition in section 227(2)(a) (amount of tax etc overdue).
(6) A notice suspending the registration of a registered tax adviser under this section must state the following—
(a) the date on which it is issued;
(b) the date on which the suspension has effect, which must not be before the end of the period of 30 days beginning with the date mentioned in paragraph (a);
(c) in a case within subsection (2), the period of the suspension;
(d) details of—
(i) in a case within subsection (1), which of the registration conditions the officer is not satisfied that the adviser meets;
(ii) in a case within subsection (2), the behaviour mentioned in that subsection;
(e) the period within which an appeal against the decision to suspend the registration of the adviser may be made.
(7) An authorised officer of Revenue and Customs must, by notice, lift a suspension imposed under subsection (1) if satisfied that the adviser meets the registration conditions.
(1) Where a tax adviser contravenes section 223(1) (prohibited interaction with HMRC), an authorised officer of Revenue and Customs may give a notice (a “compliance notice”) to the adviser.
For provision about the effect of a compliance notice, see sections 234(1)(a) and 235(1)(a) (financial penalties for prohibited interaction with HMRC).
(2) A compliance notice must state the following—
(a) the date on which it is issued;
(b) the contravention to which the notice relates;
(c) the period within which an appeal against the notice may be made.
(3) An authorised officer of Revenue and Customs may withdraw a compliance notice at any time; and if they do so, they must notify the tax adviser.
(4) A compliance notice is to be treated as withdrawn if subsection (5) or (6) applies.
(5) This subsection applies if—
(a) the tax adviser was not registered under this Chapter at the time of the contravention mentioned in subsection (1), and
(b) the tax adviser subsequently registers under this Chapter.
(6) This subsection applies if—
(a) the tax adviser’s registration was suspended under section 232 (suspension of registration) at the time of the contravention mentioned in subsection (1), and
(b) the suspension is subsequently lifted under section 232(7) or expires.
(7) Before giving a compliance notice under this section, the authorised officer must—
(a) notify the adviser of the fact that the officer considers subsection (1) to apply, and
(b) allow the adviser a period of 30 days, beginning with the date of the notification, to make representations to HMRC.
234 Financial penalties for prohibited interaction with HMRC
(1) This section applies where—
(a) a tax adviser has been given a compliance notice under section 233 that has not been withdrawn,
(b) the tax adviser subsequently contravenes section 223(1) (prohibited interaction with HMRC), and
(c) if the tax adviser is an organisation, an authorised officer of Revenue and Customs does not consider that the contravention is attributable to a relevant individual of the tax adviser (see section 235 (liability of relevant individuals)).
(2) The tax adviser is liable in respect of the contravention to a penalty of—
(a) £5,000, or
(b) if subsection (3) or (4) applies, £10,000.
(3) This subsection applies if—
(a) in the period of two years ending with the date of the contravention, the tax adviser has been assessed to a penalty under this section or section 235 on four or more occasions, and
(b) subsection (4) does not apply.
(4) This subsection applies if the contravention takes place at a time when the tax adviser is subject to—
(a) a temporary ineligibility order issued under this Chapter, or
(b) a permanent ineligibility order issued under this Chapter.
(5) For the purposes of subsection (3)(a), if a tax adviser is assessed to a penalty under this section or section 235 and the penalty is, at any time, subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not assessed on the adviser.
235 Financial penalties for prohibited interaction with HMRC: liability of relevant individuals
(1) This section applies where—
(a) a tax adviser that is an organisation has been given a compliance notice under section 233 that has not been withdrawn,
(b) the tax adviser subsequently contravenes section 223(1) (prohibited interaction with HMRC), and
(c) an authorised officer of Revenue and Customs considers that the contravention is attributable to a relevant individual of the tax adviser.
(2) The individual is liable in respect of the contravention to a penalty of—
(a) £5,000, or
(b) if subsection (3) or (4) applies, £10,000.
(3) This subsection applies if—
(a) in the period of two years ending with the date of the contravention, the relevant individual has been assessed to a penalty under this section or section 234 on four or more occasions, and
(b) subsection (4) does not apply.
(4) This subsection applies if the contravention takes place at a time when the relevant individual is subject to—
(a) a temporary ineligibility order issued under this Chapter, or
(b) a permanent ineligibility order issued under this Chapter.
(5) For the purposes of subsection (3)(a), if a relevant individual is assessed to a penalty under this section or section 234 and the penalty is, at any time, subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not assessed on the individual.
(6) In this section references to a relevant individual of a tax adviser include a former relevant individual of the tax adviser.
(1) Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b) (financial penalties for prohibited interaction with HMRC) in a case where section 234(3) applies (repeated contravention), the officer must issue a temporary ineligibility order to the tax adviser.
For provision about the effect of a temporary ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).
(2) A temporary ineligibility order issued under subsection (1) has effect for a period of 12 months from the end of the period of 30 days beginning with the date on which the order was issued to the person.
(3) Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b) (financial penalties for prohibited interaction with HMRC) in a case where section 234(4)(a) applies (contravention while subject to temporary ineligibility order), the officer must—
(a) issue a permanent ineligibility order to the tax adviser, and
(b) in a case where the adviser’s registration is suspended under section 232, cancel the adviser’s registration.
For provision about the effect of a permanent ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).
(4) A permanent ineligibility order issued under subsection (3) has effect indefinitely from the end of the period of 30 days beginning with the date on which the order was issued to the person.
(5) Before issuing an order to a person under subsection (1) or (3), the authorised officer must—
(a) notify the person of the fact that the officer considers subsection (1) or (3) (as the case may be) to apply, and
(b) allow the person a period of 30 days, beginning with the date of the notification, to make representations to HMRC.
(6) An order under subsection (1) or (3) must state—
(a) the date on which it is issued, and
(b) the period within which an appeal against the decision to issue the order may be made.
(1) Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b)(financial penalties for prohibited interaction with HMRC), the officer may—
(a) in a case where section 234(3) applies (repeated contravention), issue a temporary ineligibility order to any relevant individual of the tax adviser;
(b) in a case where section 234(4) applies (contravention while subject to an ineligibility order), issue a permanent ineligibility order to any relevant individual of the tax adviser.
(2) Where an authorised officer of Revenue and Customs assesses a relevant individual of a tax adviser to a penalty under section 235(2)(b) (liability of relevant individuals) in a case where section 235(3) applies (repeated contravention), the officer must issue a temporary ineligibility order to the individual.
(3) Where an authorised officer of Revenue and Customs assesses a relevant individual of a tax adviser to a penalty under section 235(2)(b) (liability of relevant individuals) in a case where section 235(4)(a) applies (contravention while subject to temporary ineligibility order), the officer must issue a permanent ineligibility order to the individual.
(4) For provision about the effect of a temporary or a permanent ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).
(5) A temporary ineligibility order issued under subsection (1)(a) or (2) has effect for a period of 12 months from the end of the period of 30 days beginning with the date on which the order was issued to the person.
(6) A permanent ineligibility order issued under subsection (1)(b) or (3) has effect indefinitely from the end of the period of 30 days beginning with the date on which the order was issued to the person.
(7) Before issuing an order to a relevant individual under subsection (1), (2) or (3), the authorised officer must—
(a) notify the relevant individual and the tax adviser of the fact that the officer considers subsection (1), (2) or (3) (as the case may be) to apply, and
(b) allow the relevant individual and the tax adviser a period of 30 days, beginning with the date of the notification, to make representations to HMRC.
(8) An order under subsection (1), (2) or (3) must state—
(a) the date on which it is issued, and
(b) the period within which an appeal against the decision to issue the order may be made.
(9) Where an authorised officer of Revenue and Customs issues an order to a relevant individual under this section, the officer must also notify the tax adviser in question.
(10) In this section references to a relevant individual of a tax adviser include a former relevant individual of the tax adviser.
238 Requirement for tax adviser to notify clients of suspension or ineligibility orders
(1) Where a registered tax adviser’s registration has been suspended under section 232(1) (suspension of registration: registration conditions) for a period of more than 30 days, the adviser must take reasonable steps to notify each of their clients about the suspension within the period of 30 days beginning with the 31st day of the suspension.
(2) Where a registered tax adviser’s registration has been suspended under section 232(2) (suspension of registration: behaviour of adviser), the adviser must take reasonable steps to notify each of their clients about the suspension within the period of 30 days beginning with the day on which the suspension first has effect.
(3) Where a registered tax adviser is issued with a temporary or permanent ineligibility order under this Chapter, the adviser must take reasonable steps to notify each of their clients about the issuing of the order within the period of 30 days beginning with the day on which the order first has effect.
(4) A notification to a client under subsection (1), (2) or (3) must be in the form and manner set out in a notice published by HMRC.
(5) If a tax adviser contravenes subsection (1), (2) or (3) the adviser is liable to a penalty of £5,000.
(6) Where the contravention relates to more than one client, the tax adviser is liable to a penalty under this section in respect of each client.
(1) A person is not liable to a penalty under section 234, 235 or 238 if the person satisfies an authorised officer of Revenue and Customs or, on an appeal to the tribunal, the tribunal that there is a reasonable excuse for the contravention.
(2) If a person had a reasonable excuse for a contravention but the excuse has ceased, the person is to be treated as having continued to have the excuse if the contravention is remedied without unreasonable delay after the excuse ceased.
240 Extension of period for making representations
Where a provision of this Chapter requires an authorised officer of Revenue and Customs to allow a specified period of time for a person to make representations, the officer may, by notice to the person, extend that period.
(1) Where a person becomes liable to a penalty under section 234, 235 or 238, an authorised officer of Revenue and Customs must—
(a) assess the penalty, and
(b) notify the person.
(2) A notice under subsection (1) may relate to more than one contravention by the person.
(3) A notice under subsection (1) must state—
(a) the date on which it is issued;
(b) each contravention in respect of which the penalty is assessed;
(c) the amount of the penalty;
(d) the period within which an appeal against the assessment may be made.
(4) Before assessing a tax adviser to a penalty under section 234, 235 or 238, the authorised officer must—
(a) notify the person of the fact that the officer considers the person is liable to the penalty, and
(b) allow the person a period of 30 days, beginning with the date of the notification, to make representations to HMRC.
242 Time limits and treatment of financial penalties
(1) An assessment of a penalty under section 234 or 235 must be made within the period of 12 months beginning with the day on which the person became liable to the penalty.
(2) An assessment of a penalty under section 238 must be made within the period of 12 months beginning with the day on which the contravention first came to the attention of an officer of Revenue and Customs.
(3) A penalty assessed under section 234, 235 or 238 is due and payable at the end of the period of 30 days beginning with the day on which the notice of assessment of the penalty is issued.
(4) A penalty assessed under section 234, 235 or 238 is, subject to subsection (3), to be treated for all purposes as if it were tax charged in an assessment and due and payable.
A person is not liable to a financial penalty under this Chapter in respect of anything in respect of which the person has been convicted of an offence.