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What this means for your business

38 obligations

15 penalties

1 can imprison

1 guides

Enforced by: Mining Remediation Authority, National Highways, Natural England
Applies to: United Kingdom
On this page: 38 compliance obligations, 1 practical guide

Read full text on legislation.gov.uk

What you must do

38 compliance obligations under this legislation — 1 can result in imprisonment.

Notifications 2

If you provide tax or other advisory services and HMRC (or another body) gives you a reference number for a particular arrangement, you must pass that number and the required details to your client within 30 days of receiving it. This ensures the client has the information needed for their own tax records and compliance.

Any Person s.312ZA Historic England You receive a reference number from HMRC (or another person) for a …

If you have complied with the tax rules for a particular arrangement, HMRC requires you to give them the name and address of any promoters involved. The idea is so HMRC can let those promoters know they have a reference number. Basically, you must report promoter details as part of your compliance record.

Any Person s.311A Historic England Having complied (or purporting to comply) with section 308(1) or (3)

Other requirements 1

If you run a pension scheme and you’ve made an "unauthorised payment" (or the scheme has a chargeable payment that could trigger a surcharge), you can ask HMRC to drop that penalty on the grounds that it wouldn't be fair or reasonable. The rule lets you present your case and, if HMRC agrees, you no longer have to pay the surcharge.

Any Person s.268 Historic England When you are liable to a pension‑related surcharge or scheme sanction charge …

Payments and fees 7

If your business gives tax relief at source on a contribution (for example a pension contribution) and you use a tax rate that is higher than the employee’s Scottish, Welsh or basic rate, the extra relief is treated as tax the employee must pay for that tax year. You need to check the correct rate and, where excess relief has been given, add the difference to the employee’s tax calculation.

Employer s.192B Historic England When a contribution is paid and the relief is calculated using a …

If you pay contractors for construction work, HMRC requires you to deduct a portion of that payment (the CIS tax) before you pay them and then send that deduction to HMRC. The Finance Act gives HMRC power to make rules about how big the deduction should be, when it must be paid, and the interest rate that may apply. You must follow those rules each time you make a payment, keep proof of the deduction and the payment to HMRC, and comply with any deadlines set out in the regulations.

Employer s.71 Historic England when making a payment to a contractor that is part of the …

If you are a member of one or more registered pension schemes and your pension contributions exceed the annual allowance, you must calculate a chargeable amount and pay an annual allowance charge each tax year. The charge is applied at the appropriate tax rates based on your income. This is a personal tax obligation that affects anyone, including business owners, who has exceeded the allowance.

Any Person s.227 Historic England You are a member of a registered pension scheme and have a …

If you have a pension scheme, you must pay the annual allowance charge when the value of your pension savings in a tax year exceeds the permitted annual allowance. This liability applies even if you or the scheme administrator are not resident in the UK.

Any Person s.237A Historic England Your pension contributions and value exceed the annual allowance in a tax …

For the financial year 2005 your company must calculate its corporation tax using a 30% rate and pay that amount to HMRC. The tax bill is based on your taxable profits for that year, and you must meet the usual filing and payment deadlines.

Director/Officer s.25 Historic England Financial year 2005 (accounting period ending 31 March 2005)

If your pension scheme moves a member’s benefits to a QROPS (or makes an onward transfer), the scheme administrator or manager and the member are jointly responsible for paying the overseas transfer charge. You must work out the charge and ensure it is paid whenever such a transfer occurs.

Any Person s.244J Historic England When a recognised transfer to a QROPS, a relieved relevant non‑UK scheme …

If you are the administrator of a registered pension scheme and the scheme makes a scheme‑chargeable payment in a tax year, you must calculate and pay the resulting scheme sanction charge to HMRC. The liability also applies to anyone who was the scheme administrator immediately before the scheme was wound up, even if you and the scheme are not UK‑resident.

Any Person s.239 Historic England A registered pension scheme makes one or more scheme‑chargeable payments in a …

Offences and prohibitions 11

A company must send a written notice to HMRC within three months of the start of each accounting period for corporation tax, stating when the period began and any other prescribed information. If the notice is not sent on time (and no reasonable excuse applies), the company commits an offence and may be fined.

Any Person s.55 Planning Inspectorate

If your business is required to supply documents, certificates or other information under the enhanced allowance regulations and you do not, you commit an offence. On conviction you can be fined up to £3,000. The offence is dealt with in the magistrates’ court.

Any Person s.262 Planning Inspectorate

If HMRC (or an officer of HMRC) orders you to give security for tax you owe and you do not provide it, and the breach continues for the period set by the regulations, you commit a criminal offence. On conviction you will be fined – the fine is unlimited in England & Wales and unlimited in Scotland and Northern Ireland – and the case will be dealt with in the Magistrates' Court. No prison term is specified.

Any Person s.70A Planning Inspectorate

If your pension scheme receives a notice to file a return under section 250 and you do not lodge that return, you commit an offence. The first breach attracts a £100 fine, and each additional day the return remains outstanding brings a further daily fine of up to £60 until the return is filed.

Any Person s.257 Planning Inspectorate

If you deliberately or carelessly give a false statement or representation that results in you or anyone else getting tax relief on pension income, or causes a registered pension scheme to make an unauthorised payment, you commit an offence. The same applies if you help prepare a document you know is inaccurate and that is likely to lead to an unauthorised pension payment. On conviction you face a fine of up to £3,000.

Any Person s.264 Planning Inspectorate

If your business replies to a statutory information notice (under section 159A) and the information you give is materially incorrect, you commit an offence. The penalty is the same as set out in Schedule 36 of the Finance Act 2008 for false or inaccurate information, which can include an unlimited fine and may also carry a custodial sentence. Conviction can be brought in either the Magistrates' Court or the Crown Court.

Any Person s.159D Planning Inspectorate

If you possess, transport, display, sell, offer for sale or otherwise deal with retail containers of spirits or wine over 22% ABV that are 35 cl or larger and should carry a duty stamp, but they do not, you are committing a criminal offence. On conviction in the Magistrates’ Court you face an unlimited fine and the containers (and their contents) will be seized and forfeited.

Any Person Schedule 1 Planning Inspectorate

If you attach a declaration to an application under section 153 and that declaration is false – and the conditions in section 153D are met – you commit an offence. Each false statement can attract a separate penalty. On conviction you face a fine up to the maximum penalty set in Schedule 36 of the Finance Act 2008 (an unlimited fine) and the case can be tried either in the Crown Court or, in some instances, the Magistrates' Court.

Any Person s.153F Planning Inspectorate

If you knowingly or recklessly give a false statement or document – or encourage someone else to do so – in order to get registered for a gross payment scheme or to receive payment under deduction, you commit an offence. The offence is limited to a fine of up to £3,000 and does not carry a custodial sentence. It is tried in the Magistrates' Court as a summary offence.

Any Person s.72 Planning Inspectorate

If you are the administrator of a registered pension scheme and you move money to another pension scheme that is an insured scheme, the transfer must be made either to the administrator of the receiving scheme or directly to the insurer that issued the policies. Sending the money to anyone else is a criminal offence and can result in a fine of up to £3,000.

Any Person s.266 Planning Inspectorate

If you act as the administrator of a registered pension scheme and cause the scheme to be wound up primarily so that members receive lump‑sum payments, you commit a criminal offence. On conviction you can be fined up to £3,000 for each member who receives such a lump sum. No prison term is prescribed for this offence.

Any Person s.265 Planning Inspectorate

Registration and licensing 2

If you run a pension scheme you must send an application to HM Revenue & Customs (HMRC) that includes all the information and signed declarations they ask for. The scheme will only be registered if the information is accurate, the scheme documents prevent unauthorised payments and the administrator is a fit‑and‑proper person.

Any Person s.153 Historic England When you have a pension scheme that needs to be registered (e.g., …

If you (as an individual or a company) want to be part of HMRC’s gross‑payment or payment‑under‑deduction scheme, you must apply and supply all the documents, records and information that HMRC asks for. Once HMRC is satisfied, they will register you for the appropriate payment method.

Any Person s.63 Historic England When you apply to HMRC for registration under this scheme

Reporting and filing 15

If your pension scheme’s administrator is found liable under the Finance Act, you can ask HMRC to cancel that liability where paying would seriously harm members’ interests or would be unfair. You must submit an application to HMRC and wait for their decision, which they will notify you of in writing.

Any Person s.237D Historic England When the scheme administrator is liable under section 237B

If you have already told HMRC about a notifiable tax arrangement (or a proposed one) and something changes – either the name of that arrangement or your own name or address as the promoter – you must let HMRC know within 30 days. Failing to do so could breach the Finance Act.

Any Person s.310C Historic England You have previously provided information to HMRC under s.308 about a notifiable …

If you act as a promoter (for example, a tax adviser or other service provider) for a client’s notifiable arrangement, you must give the client the reference number and the prescribed details within 30 days of learning about the transaction or receiving the number, unless a specific exemption applies.

Trader/Business s.312 Historic England When you provide services to a client in connection with a notifiable …

If you have already supplied information about a notifiable tax proposal or arrangement and HMRC believes it is incomplete, they can ask you for more details or documents. You must give them the extra information within 10 working days (or a longer period if they allow it). Failing to do so can lead to further action by HMRC.

Any Person s.310A Historic England HMRC issues a request for further information under section 310A

If your business enters into a transaction that falls under a HMRC‑defined "notifiable arrangement" and you are not the promoter or dealing with a promoter outside the UK, you must send the required details to HMRC at the time they specify. This is a reporting duty – you need to gather and submit the prescribed information by the deadline given by the tax authorities.

Any Person s.310 Historic England When you are a party to a notifiable arrangement that is not …

If HMRC have flagged an arrangement (by giving it a reference number under section 311(3)), they can ask you for details and supporting documents. You must supply everything they specify, usually within 10 working days of the request. Failing to do so can lead to criminal prosecution.

Any Person s.311C Historic England HMRC has allocated a reference number to an arrangement or proposed arrangement …

If your business enters a transaction that forms part of a notifiable arrangement and the promoter involved lives outside the UK (with no UK‑resident promoter), you must send the prescribed information about that arrangement to HMRC within the time limit set by the regulations. The duty is lifted if the promoter has already supplied the required information.

Any Person s.309 Historic England When you enter a transaction that is part of a notifiable arrangement …

If you give HMRC a statement explaining why a proposed arrangement does not need to be reported and they are not satisfied, they can ask a tribunal to order you to provide supporting information. You must supply the requested documents within the time limit set by HMRC.

Any Person s.313B Historic England HMRC obtains a tribunal order requiring you to supply supporting information after …

If HMRC thinks you have not given the information they asked for under section 310A, they can ask a tribunal to order you to do so. You must then supply the requested information within 10 working days (or a longer period if HMRC tells you). Failing to comply with that order could lead to enforcement action.

Any Person s.310B Historic England HMRC obtains a tribunal order requiring you to provide information under section …

If you have given HMRC details about a client and HMRC believes other people are involved, HMRC can ask you for information about those other people. You must supply the requested information within the time‑frame they set (or any longer period they allow).

Any Person s.313ZB Historic England You have supplied client details to HMRC under s313ZA(3) and HMRC suspects …

If HMRC think you have acted as an introducer for a proposal that might need to be reported, they can send you a written notice asking for details. You must give them the prescribed information about anyone who supplied you with information and anyone you contacted about the proposal, within the time limit set in the notice.

Any Person s.313C Historic England HMRC serves you with a written notice under s.313C because they suspect …

If you (or your business) act as a promoter of a transaction that HMRC classifies as a ‘notifiable proposal’ or ‘notifiable arrangement’, you must send HMRC the details it asks for within a set time after the first relevant event (e.g., the first firm approach, making the proposal available, or first becoming aware of a related transaction). If another promoter has already supplied the same information and you hold the reference number, you may be exempt, but you still need to keep the information and reference.

Any Person s.308 Historic England When you are a promoter of a notifiable proposal or notifiable arrangements …

If you act as a promoter or service provider for a client in relation to a notifiable tax arrangement, you must send HMRC the prescribed client information within the set reporting period. The information includes the reference number for the arrangement and other details required by the regulations.

Any Person s.313ZA Historic England When you provide services to a client connected with a notifiable tax …

If HMRC sends you a written notice asking whether a proposal or arrangement you are involved with should be reported to them, you must reply. Your reply must say whether you think it is notifiable and, if you think it is not, give detailed reasons showing which tax rules apply. The reply must be sent within the time‑limit set in the notice.

Any Person s.313A Historic England When HMRC serves a written notice under s.313A requesting your view on …

If your company was operating in the 2004 financial year, you must calculate your corporation tax using a starting rate of 0% and a marginal relief fraction of 19/400. This changes how much tax you owe for that year and must be applied correctly when you file your returns.

Director/Officer s.27 Historic England Financial year 2004

Penalty applies

s.159C Penalises: Provide inaccurate information under an information notice

Practical guidance

Our guides explain how to comply with the requirements above.

CIS: verifying subcontractors with HMRC

How to verify subcontractors under the Construction Industry Scheme before making payments. Covers the verification process, payment statuses, record-keeping requirements, …

Sections and provisions

500 classified provisions from this legislation.

29 Duties 16 Offences and penalties 54 Powers 91 Definitions 43 Exemptions

Duties 29

s.25 Charge and main rate for financial year 2005
s.27 Corporation tax starting rate and fraction for financial year 2004
s.63 Registration for gross payment or for payment under deduction
s.71 Collection and recovery of sums to be deducted matters with respect
s.153 Registration of pension schemes
s.157 De-registration
s.192B Relief at source: excessive relief given
s.227 Annual allowance charge
s.237D Discharge of scheme administrator's liability
s.237A Liability of individual
s.239 Scheme sanction charge
s.244N Discharge of liability of scheme administrator or manager
s.244J Persons liable to charge
s.268 Unauthorised payments surcharge and scheme sanction charge
s.308 Duties of promoter
s.309 Duty of person dealing with promoter outside United Kingdom
s.310 Duty of parties to notifiable arrangements not involving promoter
s.310B Failure to provide information under section 310A: application to the Tribunal the person
s.310A Duty to provide further information requested by HMRC the person
s.310C Duty of promoters to provide updated information
... and 9 more duties

Offences and penalties 16

s.55 Duty of company to give notice of coming within charge to corporation tax
s.70A Security for payments to HMRC
s.72 Penalties
s.153D Penalties for inaccurate information in applications
s.153E Penalties for inaccurate information or documents provided under information notice
s.153F Penalties for false declarations
s.153C Penalties for failure to comply with information notices etc
s.159D Penalties for inaccurate information or documents provided under information notice
s.159C Penalties for failure to comply with information notices etc
s.257 Registered pension scheme return
s.262 Enhanced ... allowance regulations: failures to comply
s.263 ... Enhanced protection: benefit accrual
s.264 False statements etc
s.265 Winding-up to facilitate payment of lump sums
s.266 Transfers to insured schemes
Schedule 1 New Schedule 2A to the Alcoholic Liquor Duties Act 1979

Powers 54

s.4 Duty stamps for spirits etc
s.8 Definition of “fuel oil”
Schedule 11 Conditions for registration for gross payment
s.13 Warehousing
s.18 Fee for payment of duty by credit card
s.19 Disclosure of VAT avoidance schemes
s.20 Groups
s.46 Power to make consequential amendments
s.59 Contractors
s.61 Deductions on account of tax from contract payments
s.65 Change in control of company registered for gross payment
s.66 Cancellation of registration for gross payment
s.68 Registration for payment under deduction: cancellation and appeals
s.69 Verification etc of registration status of sub-contractors
s.73 Regulations under this Chapter: supplementary
s.74 Meaning of “construction operations”
s.75 Meaning of “the Inland Revenue” etc and delegation of Board’s functions
s.153A Power to require information or documents in relation to applications for registration
s.158 Grounds for de-registration
s.159A Power to require information or documents for purpose of considering if scheme administrator is fit and proper
... and 34 more powers

Definitions 91

Schedule 8 Loan relationships: miscellaneous amendments
s.15 General betting duty: pool betting totalisator odds bookmaker on-course bet
s.57 Introduction construction contract the contractor
s.58 Sub-contractors
s.62 Treatment of sums deducted set-off claim the sub-contractor Class 4 contributions
s.64 Requirements for registration for gross payment director
s.115 Supplementary
s.118 Authorised unit trusts: treatment of umbrella schemes unit holder authorised unit trust umbrella scheme
s.149 Overview of Part 4
s.150 Meaning of “pension scheme” pension scheme public service pension scheme a relevant governmental or Parliamentary person or body
s.151 Meaning of “member”
s.152 Meaning of “arrangement” cash balance benefits collective money purchase benefits
s.153B Power to inspect documents in relation to applications for registration business premises
s.159B Power to inspect documents for purpose of considering if scheme administrator is fit and proper business premises
s.160 Payments by registered pension schemes unauthorised member payment unauthorised employer payment unauthorised payment
s.161 Meaning of “payment” etc
s.162 Meaning of “loan”
s.163 Meaning of “borrowing” etc
s.164 Authorised member payments prescribed authorised payment
s.165 Pension rules
... and 71 more definitions

Exemptions 43

Schedule 14 Vans
Schedule 28 Registered pension schemes: authorised pensions—supplementary
Schedule 32 Registered pension schemes: benefit crystallisation events ...
Schedule 34 Non-UK schemes: application of certain charges and protections etc
Schedule 40 Stamp duty land tax: claims not included in returns
s.55A Section 55: exception to duty to give notice
s.60 Contract payments
s.73A Designated international organisations: exemption from section 59
s.77 Commencement and transitional provision
s.134 Finance leasebacks
s.154 Persons by whom registered pension scheme may be established
s.172B Increase in rights of connected person on death
s.173 Benefits
s.186 Income
s.188 Relief for contributions
s.196Fn Employer asset-backed contributions: denial of relief (3)
s.197 Spreading of relief
s.200 No other relief for employers in connection with contributions
s.202 Minimum contributions under pensions legislation
s.207 Authorised surplus payments charge
... and 23 more exemptions

🧪 Business Context Testing

What this means for your business

What you must do

Notifications 2

Notify client of reference number within 30 days

Notify HMRC of promoters for compliant arrangements

Other requirements 1

Apply to HMRC to have pension surcharge or scheme sanction charge removed

Payments and fees 7

Adjust tax if excessive relief at source is given

Deduct and pay required taxes to HMRC when paying contractors

Pay any annual allowance charge on pension contributions

Pay any pension annual allowance charge due

Pay corporation tax at 30% for FY 2005

Pay overseas transfer charge for QROPS transfers

Pay the scheme sanction charge to HMRC

Offences and prohibitions 11

Fail to give required corporation‑tax notice

Fail to provide documents or information required by enhanced allowance regulations

Fail to provide required HMRC security

Fail to submit required pension scheme return

Make a false statement to obtain pension tax relief

Provide inaccurate information under an information notice

Sell or deal in unstamped alcohol containers

Submit a false declaration with a finance application

Submit false information to become registered for gross payments

Transfer pension scheme assets to an insured scheme incorrectly

Wind up pension scheme mainly to pay lump‑sum benefits

Registration and licensing 2

Apply to register your pension scheme with HMRC

Register with HMRC for gross payment or deduction scheme

Reporting and filing 15

Apply to HMRC to discharge scheme administrator's liability

Notify HMRC of any change to notifiable arrangements or promoter details

Provide client with reference number information for notifiable arrangements

Provide further information to HMRC when requested

Provide HMRC with information on notifiable arrangements

Provide information and documents to HMRC when requested

Provide information on notifiable arrangements to HMRC

Provide information to HMRC when ordered after non‑notification statement

Provide information to HMRC when ordered by a tribunal

Provide requested information about third parties to HMRC

Provide requested information to HMRC when served with a notice

Provide required information to HMRC as a promoter of notifiable proposals

Report client details to HMRC for notifiable tax arrangements

Respond to HMRC pre‑disclosure enquiry

Use 0% starting rate and 19/400 fraction for FY2004 corporation tax

Penalties for non-compliance

Provide inaccurate information or documents in response to an information notice