Registering visitor accommodation: technical guidance - Penalties for failing to register or notify WRA of changes and inaccuracies

Initial penalties

Penalties for registration only come into force from 01 April 2027 onwards.

A penalty for failing to register may apply if a person has failed to register premises in Wales where they provide, or offer to provide, visitor accommodation. 

The amount of the penalty will be calculated using the following formula:

£100 × A

A is the number of premises which should be registered but are not. 

Where a penalty is applied, the penalty notice will include information on the premises to which the penalty relates. 

The penalty must be paid within a period of 30 days beginning with the day on which the notice of the penalty is issued, unless the taxpayer requests a review or appeals to the tribunal in respect of that penalty.

Example of failing to register multiple premises

All Welsh Cottages Limited is a visitor accommodation provider who provides visitor accommodation at 17 cottages across Wales. They do not register on time and so are liable to a penalty. The penalty, which is calculated by multiplying £100 by 17 (the number of cottages not registered when they should be), totals £1700. 

Example of failing to register additional premises

Aled is already registered in respect of 3 premises at which he provides visitor accommodation. He purchases a new premises and starts offering it on his website immediately after his purchase completes. As he hasn’t registered the property before he begins offering to provide visitor accommodation at the new premises, he is liable for a £100 penalty. This is calculated by multiplying £100 by 1 (the new premises that is not registered when it should be).

Further penalties

If an initial penalty notice for failing to register is issued and the premises are still not registered, then further penalties may be applied. 

The visitor accommodation provider must register the premises to which the initial penalty notice relates within 30 days beginning with the date the notice is issued. This is called the “initial penalty period”.  

If any of the premises remain unregistered after the initial penalty period the visitor accommodation provider is liable to:

• a penalty for each day after the initial penalty period, for up to 30 days, and
• a penalty on the 31st day after the initial penalty period 

The amount of the penalty will be calculated using the following formula: £X × P

X is:

• £10 for a penalty that applies daily up to and including 30 days after the initial penalty period, and
• £1000 for a penalty that applies on the 31st day after the initial penalty period

P is the number of premises specified in the penalty notice:

• where the visitor accommodation provider offers to provide, or provides, visitor accommodation on the day to which the daily penalty relates, and 
• remains unregistered on the day to which the daily penalty relates

This means that further penalties of up to £1300 per unregistered premise may apply.

If the initial penalty is subject to a review or appeal, the initial penalty period will be extended until the review is complete or an appeal has been determined or withdrawn. 

Example of applying daily penalties for registering on the 15th day after the initial penalty period

Welsh Wonder Lodges Ltd own 7 lodges across Wales. They failed to register on time and received an initial penalty of £700 for failing to register. Welsh Wonder Lodges Ltd register all 7 of their lodges on the 15th day after the initial penalty period. The lodges were not registered within the initial penalty period of 30 days, so daily penalties will apply. 

The calculation for the daily penalties will be: 

£10 × 7 = £70 

This is the daily penalty amount multiplied by the 7 lodges that remain unregistered. This gives the total daily penalty amount:

 £70 × 14 = £980 

This is the total daily penalty amount multiplied by the number of days the lodges remained unregistered 

The total penalties that Welsh Wonder Lodges must pay is £700 for the initial penalty, plus £980 in daily penalties, which totals £1680.

Example of applying daily penalties for registering more than 31 days after the initial penalty notice

Joel owns 2 holiday homes in different areas. He is a visitor accommodation provider and fails to register the holiday homes on time. He becomes liable to a £200 initial penalty for failing to register his 2 holiday homes with the WRA. Joel fails to register the holiday homes after he receives the initial penalty notice, and more than 31 days pass before he registers. Daily penalties will apply. 

The calculation for the daily penalties will be: 

£10 × 2 = £20 

This is the daily penalty amount multiplied by the 2 holiday homes that remain unregistered. This gives the total daily penalty amount: 

£20 × 30 days = £600

This is the total daily penalty amount multiplied by the number of days the holiday homes remained unregistered. The full 30 days of daily penalties apply. 

As the premises were not registered within those 30 days, the final daily penalty applies:

£1000 × 2 = £2000

This is the 31^st, and final, daily penalty of £1000 multiplied by the 2 holidays homes that remain unregistered. 

Joel is liable to a total of £2800 in penalties: £200 for the initial penalty, followed by £600 in daily penalties at £10 per day per premises, and then a final £2,000 penalty (£1,000 per premises). 

Ceasing to be a visitor accommodation provider

Where a person stops being a visitor accommodation provider, but they were liable to a penalty for failing to register whilst they were a visitor accommodation provider, they remain liable to that penalty. 

Registrations by WRA

If the WRA make an entry in the register because a person is not registered and has not made an application to register, then the penalties for failing to register still apply. 

Failure to register and relying on WRA to make the entry in the register is non-compliant and so the same penalties will apply regardless of WRA’s action. 

Penalties will not apply from the date that the person gives notice to the WRA which:

• provides the information needed to make their entry in the register complete and accurate, or
• where information is not needed by the WRA from that person, that person confirms the entry is complete and accurate

Penalties will not apply from the date the person gives notice to the WRA that they wish to be removed from the register. 

Initial penalties

Where WRA issues a penalty notice in relation to an entry in the register being inaccurate, the notice must outline what information the WRA considers is inaccurate. 

Inaccuracy in the register

A visitor accommodation provider is liable to a penalty of £100 if they fail to notify WRA of an inaccuracy in their entry in the register within 30 days, starting with the day they first knew about the inaccuracy, or ought to have known about the inaccuracy. 

Change in circumstances

A visitor accommodation provider is liable to a penalty of £100 if they fail to notify WRA within 30 days of a change in circumstances, starting with the date of the change, which causes their entry in the register to become inaccurate.

Further penalties

A visitor accommodation provider has 30 days starting with the day the penalty notice is issued to provide WRA with the information needed to ensure the entry in the register is corrected. This period is called the initial penalty period.

If a visitor accommodation provider is issued with a penalty for failing to notify WRA of the inaccuracy, or change in circumstances, and they do not provide WRA with a notice containing the information needed to correct the entry in the register by the end of the initial penalty period, they will become liable to further penalties. 

Daily penalties will be applied at £10 for every day the visitor accommodation provider does not provide the notice to WRA up to and including the 30^th day after the initial penalty period.

If the failure to provide the notice to the WRA continues, a penalty of £1000 applies on the 31^st day after the initial penalty period. After the £1000 penalty is applied, no further penalties will accrue in relation to that particular inaccuracy or change of circumstances which led to an inaccuracy.

If the initial penalty is subject to a review or appeal, the initial penalty period will be extended until the review is complete or an appeal has been determined or withdrawn.

Interaction with other penalties

If the inaccurate information means that a person is liable to a penalty for failing to register, or for failing to apply for removal from the register, the person will not also be liable to a penalty for failing to notify WRA of the change or inaccuracy.

Initial penalty

If a person does not apply to the WRA to be removed from the register but they should have, they will be liable to an initial penalty of £100. 

Further penalties

Where an initial penalty has been applied for failing to apply for removal from the register, further penalties will be applied if the person:

• fails to apply to the WRA for their entry in the register to be removed within 30 days starting with the date that the initial penalty notice is issued (this is called the initial penalty period), and
• has not provided, or offered to provide, visitor accommodation at any premises in Wales during that initial penalty period

The penalty will be £10 for each day, up to and including the 30th day after the initial penalty period, that the person fails to apply for removal from the register and does not provide, or offer to provide, visitor accommodation at any premises in Wales. 

If the failure to apply for removal from the register continues and the person does not provide, or offer to provide, visitor accommodation at any premises, a further penalty of £1000 applies on the 31st day after the initial penalty period. After the £1000 penalty is applied, no further penalties will accrue in relation to failing to apply for removal from the register. 

When calculating the initial penalty period, any days where the initial penalty is subject to a review or under appeal will not be counted.

Initial penalty

Where WRA has issued a notice requesting information or documents (or both) and it has not been complied with, the person who was issued with that notice is liable to an initial penalty of £100.

If a person who has received an initial penalty fails to provide the WRA with the information or documents requested within 30 days starting with the day the initial penalty notice is issued (this is called the initial penalty period), they will be liable to further penalties.

Further penalties

Daily penalties will be applied at £10 for every day the person does not provide the information or documents to the WRA up to and including the 30^th day after the initial penalty period.

If the failure to provide the information or documents to the WRA continues, a further penalty of £1000 applies on the 31^st day after the initial penalty period. After the £1000 penalty is applied, no further penalties will accrue in relation to that notice requesting information or documents.

When calculating the initial penalty period, any days where the initial penalty is subject to a review or under appeal will not be counted.

A person will not be liable to a penalty if they satisfy the WRA, or the First-tier Tribunal on appeal, that there is a reasonable excuse for the failure which resulted in penalty being imposed. 

A reasonable excuse is something that stopped the person meeting an obligations that they took reasonable care to meet.

There is no statutory definition of a reasonable excuse: it is a matter to be considered in the light of all the circumstances of the particular case. What is reasonable will differ from person to person depending on their particular circumstances and abilities.

The following categories are examples of things which the WRA may consider to be a reasonable excuse for a period of time, but as mentioned before it will ultimately depend on the individual circumstances of each case, which are likely to require many other factors to be taken into account:

• bereavement – the death of a close relative or domestic partner around the time of the failure or obstruction
• serious illness – if this affects the person or a close relative or domestic partner around the time of the failure or obstruction
• an unexpected stay in hospital that prevented the person from dealing with their tax affairs
• a loss of records through fire, flood or theft
• an unexpected loss of key personnel
• computer or software failure just before or while the person was preparing their registration form
• unexpected disruption to the WRA’s online services
• postal delays that the person couldn’t have predicted
• delays related to a person’s disability

The following won’t be accepted as a reasonable excuse:

• reliance on another person (unless the person took reasonable care to avoid the failure or obstruction)
• a person made a mistake in the registration form

In addition, the WRA would not generally consider the following to be a reasonable excuse:

• the registration form is too difficult to complete
• pressure of work
• lack of information
• the fact that the WRA did not remind the person about something
• ignorance of the law, or
• a combination of any of the above

The onus is on the person to satisfy the WRA that they had a reasonable excuse at the time of the failure or obstruction (whichever applies). It is important to appreciate that a reasonable excuse does not apply where the failure or obstruction was deliberate.

The person must comply with their obligations as soon as possible after their reasonable excuse is resolved. If they do not put right the action or inaction without unreasonable delay after the excuse has ended, they remain liable to the penalty.

The WRA will consider carefully both the point at which a reasonable excuse ends and the actions the person took after that time to put right the action or inaction, or otherwise remedy the failure. Each case must be dealt with on its own merits.

In terms of unreasonable delay, there is no statutory definition of ‘unreasonable’. Again, each case must be judged on its own merits in view of the person’s abilities and circumstances.

If the WRA decides not to accept the person’s excuse as reasonable and impose a penalty, they can request a review or appeal in relation to the WRA’s decision.

The WRA may reduce the amount of a penalty (including any interest in relation to the penalty) if it thinks it is right to do so because of special circumstances.

The WRA may also decide, because of special circumstances, to apply any of the following actions in relation to a penalty (including any interest in relation to the penalty):

• remitting the penalty entirely
• suspend it, and
• agreeing a compromise with the taxpayer in relation to proceedings for the penalty

Special circumstances do not include a person’s ability to pay.

To be considered as special circumstances, the circumstances in question must apply to the person and must not be general circumstances that apply to many other people by virtue of the penalty legislation.

Special circumstances are something that is not otherwise provided for in legislation. So, for example, they will not include matters that amount to a reasonable excuse or reasonable care. 

Special circumstances are uncommon or exceptional circumstances that should be clearly recognisable as such and are completely separate from the other considerations mentioned above.

Payment of penalties

Any penalty must be paid within a period of 30 days beginning with the day on which the notice of the penalty is issued, unless the taxpayer requests a review or appeals to the tribunal in respect of that penalty. 

Assessment of penalties

When a person becomes liable to a penalty, the WRA must make an assessment of that penalty and notify the person of their liability. 

Where that person has passed away, the penalty can be assessed on the personal representative of that person and is to be paid out of the deceased person's estate. 

For the following penalties, WRA must make an assessment of the penalty as soon as practicable, and within a maximum of 12 months, beginning with the day the WRA first considered that a visitor accommodation provider became liable to:

• penalty for failing to register
• penalty for failing to notify WRA of changes and inaccuracies
• penalties for failure to comply with a notice for information or documents
• penalties for failing to deregister / apply to be removed from the register

For the following penalties, WRA must make an assessment of the penalty as soon as practicable, and within a maximum of 12 months, beginning with the day that the penalty relates to:

• further penalties for failing to register
• further penalties for failing to notify WRA of changes and inaccuracies
• further penalties for failure to comply with a notice requesting information or documents
• further penalties for failing to deregister / apply to be removed from the register

Format of notice

As a minimum the notice issued by the WRA in relation to a penalty will need to include information on:

• the grounds or reason why the penalty has been applied
• the payment date for the penalty
• any representations that may be made in relation to having a reasonable excuse or special circumstances 
• the rights of review or appeal of the penalty

Double jeopardy

A person is not liable to any penalty if they have already been convicted of a criminal offence arising out of the same conduct. This is known as the ‘double jeopardy’ rule.