Explanatory Note

(This note is not part of the Regulations)

Schedule 26 to the Finance Act 2021 provides for penalties for failure to pay tax. Penalties are payable where tax remains unpaid after the end of 15 days and 30 days from the due date for payment. The penalty amounts are calculated by applying specified percentages to the amount of the unpaid tax.

These Regulations bring Schedule 26 into force for the purpose of making regulations under paragraph 11 of that Schedule.

Paragraph 11 of Schedule 26 permits the Commissioners for HMRC to amend Part 2 of that Schedule by regulations to change references to 15 or 30 days to a greater or lesser number of days, or to increase or reduce the percentages specified in paragraphs 5(4), 5(5) and 8(3) of that Schedule.

Paragraph 22(4) of Schedule 26 provides for regulations made under that Schedule to include transitional, transitory and saving provision.

A Tax Information and Impact note has not been prepared for this instrument as it contains no substantive changes to tax policy and it is appointed day Regulations.