PAYE regulations or regulations under section 70(1)(a) or 71 of the Finance Act 2004 (sub-contractors) may provide that this section shall apply in relation to any specified provision of the regulations.
Where this section applies in relation to a provision of regulations, any person who fails to make a return in accordance with the provision shall be liable—
to a penalty or penalties of the relevant monthly amount for each month (or part of a month) during which the failure continues, but excluding any month after the twelfth or for which a penalty under this paragraph has already been imposed, and
if the failure continues beyond twelve months, without prejudice to any penalty under paragraph (a) above, to a penalty not exceeding
in the case of a provision of PAYE regulations, so much of the amount payable by him in accordance with the regulations for the year of assessment to which the return relates as remained unpaid at the end of 19th April after the end of that year, or
in the case of a provision of regulations under section 70(1)(a) or 71 of the Finance Act 2004, £3,000.
For the purposes of subsection (2)(a) above, the relevant monthly amount in the case of a failure to make a return—
where the number of persons in respect of whom particulars should be included in the return is fifty or less, is £100, and
where the number is greater than fifty, is £100 for each fifty such persons and an additional £100 where that number is not a multiple of fifty.
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