What are the UK presence requirements for Help-to-Save accounts under Schedule 2, paragraph 12?

The Treasury may make regulations linking Help-to-Save bonus entitlement to the account holder's presence in the United Kingdom. These regulations can impose a duty to notify the account provider of any absences from the UK, ensuring HMRC and the provider are aware of circumstances that could affect eligibility for bonus payments.

What penalty can be imposed for failing to notify an absence from the United Kingdom on a Help-to-Save account?

A penalty of up to £300 may be imposed on any person who fails to notify the account provider about the account holder's absences from the United Kingdom as required. The penalty framework from Schedule 36 to the Finance Act 2008 applies, governing liability, assessment, appeals, and enforcement.

What are the time limits for HMRC to assess a Help-to-Save absence notification penalty?

HMRC must assess the penalty within 12 months of the date an officer first became aware of the failure and within 6 years of the date the person first became liable to the penalty. Both conditions must be satisfied, so whichever deadline falls earlier becomes the effective cut-off for assessment.

How can HMRC recover penalties from Help-to-Save bonus payments?

In addition to standard HMRC enforcement mechanisms, the regulations may allow the penalty to be deducted directly from any bonus that would otherwise be paid on the Help-to-Save account concerned. This provides a practical recovery route, reducing the account holder's bonus by the penalty amount.

Savings (Government Contributions) Act 2017 section Sch 2 para 12

UK presence requirements and penalties for Help-to-Save accounts

Schedule 2, paragraph 12 deals with the rules around notifying the account provider if a Help-to-Save account holder is absent from the United Kingdom, and the penalties that can be imposed for failing to do so.

The Treasury may make regulations linking Help-to-Save bonus entitlement to the account holder's presence in the United Kingdom, including a duty to notify the account provider of any absences from the UK.
A penalty of up to £300 may be imposed on any person who fails to notify the account provider about the account holder's absences from the United Kingdom as required.
Any such penalty must be assessed within 12 months of HMRC becoming aware of the failure, and in any event within 6 years of the person first becoming liable to the penalty.
The penalty may be recovered by deducting it from any bonus payments due on the Help-to-Save account in question, as well as through the standard enforcement mechanisms available to HMRC.

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