Employer Helpbook for Statutory Maternity Pay - HM Revenue ...

Penalties
Legislation provides that employers failing or refusing to
operate the SMP Scheme correctly can incur penalties.
Like those in place for PAYE or NICs these penalties are
civil (not criminal).
The penalties cover the following offences.
• Any failure by you to give your employee the required
information up to a maximum of £300 and £60 for
each day the failure continues.
• The refusal or repeated refusal or failure by you to pay
SMP to your employee or the payment of an incorrect
amount of SMP due to either fraud or negligence
could make you liable to a penalty up to a maximum
of £3,000.
• A refusal by you to allow access to your records or a
failure to comply with a formal information notice both
of which attract a maximum penalty of £300 and £60
for each day the failure continues.
• A failure to keep records could make you liable to a
penalty up to a maximum of £3,000.
• The provision of incorrect information or documents,
either fraudulently or negligently, in response to a
formal information notice – the penalty is up to a
maximum of £3,000.
• The fraudulent or negligent production of incorrect
records – the penalty is up to a maximum of £3,000.
• The provision of incorrect information either
fraudulently or negligently to your employee could
make you liable to a penalty up to a maximum
of £3,000.
• Obtaining, either fraudulently or negligently, incorrect
funding could make you liable to a penalty up to a
maximum of £3,000.
• Anyone who fraudulently or negligently makes an
incorrect statement or declaration to establish
entitlement to SMP could be liable to a penalty up
to a maximum of £3,000.
Where it is considered that a penalty is appropriate it will
be imposed by either an officer of HMRC or an
independent tribunal, but in all cases there is a right
of appeal.
The outcome of any appeal could see the penalty upheld,
varied or dismissed.
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Employer Helpbook E15(2012)