Income Tax (Earnings and Pensions) Act 2003 section 421JC

Penalties for late returns

Section 421JC sets out the escalating penalty regime that applies when a person fails to file a return of employment-related securities on time under section 421JA.

• An initial penalty of £100 applies immediately upon missing the filing deadline, with further fixed penalties of £300 each at the three-month and six-month marks
• After nine months, HMRC may impose daily penalties of £10 for each day the failure continues during a period specified by notice, and multiple such notices may be issued
• No penalty arises where the person can demonstrate a reasonable excuse to HMRC or, on appeal, to the tribunal
• Lack of funds and reliance on another person are not generally accepted as reasonable excuses unless specific conditions are met