When does a penalty arise under paragraph 20 of Schedule 2 to the Savings (Government Contributions) Act 2017?

A penalty arises when a person provides materially inaccurate information or documents to HMRC in connection with Help to Save accounts, whether in response to reporting requirements under paragraph 18 or HMRC information notices under paragraph 19. The inaccuracy must be careless, deliberate, or the person must have known about it and failed to inform HMRC.

What are the three conditions that trigger a penalty for inaccurate information under Help to Save rules?

Condition A is that the inaccuracy was careless or deliberate, where carelessness means failing to take reasonable care. Condition B is that the person knew of the inaccuracy when providing the information but did not inform HMRC. Condition C is that the person later discovered the inaccuracy but failed to take reasonable steps to notify HMRC.

What is the maximum penalty for a material inaccuracy under paragraph 20 of Schedule 2?

The maximum penalty for each material inaccuracy is the amount specified in paragraph 40A(5) of Schedule 36 to the Finance Act 2008. Importantly, if a single document contains multiple material inaccuracies, a separate penalty applies for each one, each subject to the same maximum amount under the Finance Act 2008 framework.

How are penalties for inaccurate Help to Save information assessed and appealed?

The assessment, appeal, and enforcement rules for these penalties follow the same framework as those under paragraph 40A of Schedule 36 to the Finance Act 2008, specifically paragraphs 46 to 49 and 52 of that Schedule. This provides a consistent procedure for challenging penalties through established HMRC appeal mechanisms.

Savings (Government Contributions) Act 2017 Schedule 2 para 20

Penalties for inaccurate information or documents

Paragraph 20 sets out the penalties that apply when a person provides inaccurate information or documents to HMRC in connection with Help to Save accounts.

A penalty arises where a person provides materially inaccurate information or documents when complying with Help to Save reporting requirements or HMRC information notices
The inaccuracy must be careless, deliberate, or the person must have known about it and failed to notify HMRC either at the time or upon later discovery
The maximum penalty for each material inaccuracy is the amount specified in paragraph 40A(5) of Schedule 36 to the Finance Act 2008, and a separate penalty applies for each inaccuracy in a single document
The assessment, appeal and enforcement rules for these penalties follow the same framework as those under Schedule 36 to the Finance Act 2008

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