Taxation (International and Other Provisions) Act 2010 section 39

Penalty for failure to keep and preserve records

Section 39 sets out the penalty that applies when a company fails to keep and preserve the records required under paragraph 38, including the maximum penalty amount, assessment procedures, and rights of appeal.

• A company that fails to keep and preserve the required records faces a penalty of up to £3,000.
• An HMRC officer must assess the penalty and notify the company within 12 months of first becoming aware of the failure.
• The company has 30 days from notification to appeal against the penalty by giving notice to the HMRC officer who issued it.
• The penalty must be paid within 30 days of notification, or if an appeal is made, within 30 days of the appeal being finally determined or withdrawn.