What triggers the penalty period under section 118A of the Tax Collection and Management (Wales) Act 2016?

The penalty period begins when a person first incurs a late filing penalty under section 118 for a landfill disposals tax return required under section 39 of the Landfill Disposals Tax (Wales) Act 2017. It starts the day after the filing date and runs for 12 months, during which any further late returns attract escalating penalties.

How do the escalating penalty amounts work under section 118A?

Penalty amounts increase with each successive failure during the penalty period. The first failure within the period attracts a £200 penalty, the second failure attracts £300, and the third and every subsequent failure attracts £400. These amounts apply per failure, so persistent non-compliance results in accumulating multiple penalties at these escalating rates.

Can the 12-month penalty period be extended under section 118A?

Yes. Each time a person fails to file another landfill disposals tax return on time during the existing penalty period, the period is extended by a further 12 months from the filing date of that later return. This rolling extension means continued late filing keeps the person within the escalating penalty regime indefinitely.

How does section 118A interact with the standard section 118 penalty?

Once a penalty period is active under section 118A, any subsequent late landfill disposals tax return does not attract a standard section 118 penalty. Instead, the person receives the higher escalating penalty under section 118A. The standard section 118 penalty only applies to the initial failure that triggers the penalty period.

Tax Collection and Management (Wales) Act 2016 section 118A

Penalties for multiple failures to make tax returns in respect of landfill disposals tax

Section 118A introduces escalating penalties for persons who repeatedly fail to submit landfill disposals tax returns on time during a rolling penalty period.

A penalty period of 12 months begins when a person first incurs a late filing penalty under section 118 for a landfill disposals tax return
If the person fails to file another landfill disposals tax return on time during that penalty period, they receive a penalty under this section instead of under section 118, and the penalty period is extended by a further 12 months from the filing date of that later return
The penalty amounts escalate with each successive failure during the penalty period: £200 for the first failure, £300 for the second, and £400 for the third and every subsequent failure
The penalty period can be extended repeatedly, meaning that continued late filing keeps the person within the escalating penalty regime indefinitely

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