Finance Act 2009 Sections 101 and 102 Appointed Day Order 2026: penalties for late payment and promotion of tax avoidance schemes in UK health and safety compliance

Finance Act 2009 Sections 101 and 102 Appointed Day Order 2026: impact on UK health and safety law and regulatory compliance for duty holders

What has changed

The Appointed Day Order brings into force provisions concerning late payment and repayment interest set out in sections 101 and 102 of the Finance Act 2009 for penalties issued under the regime. This change affects how penalties can accrue additional costs when payments are late or repayments are delayed, altering the financial risk profile for organisations that fall under those penalties.

Why it matters

For businesses, the change increases potential penalties and interest exposure, reinforcing the need for strong governance around financial compliance as well as operational risk controls. While not a direct HSE requirement, the update sits within the broader UK health and safety law landscape by driving a higher standard of regulatory compliance, with implications for treasury management and governance systems. A robust health and safety management approach under ISO 45001 helps align financial and regulatory risk with risk controls ISO 45001 occupational health and safety management.

What organisations should do next

Duty holders should prioritise actions to understand and mitigate enhanced penalty risk and to strengthen governance around regulatory compliance. Recommended steps include:

1. Map penalty exposure with finance and compliance teams, identifying which activities could trigger Sections 101 and 102 penalties.
2. Review cash flow planning and ensure timely payment to HMRC or other penalties regimes to avoid late payment interest.
3. Update risk assessments and governance documentation to reflect the new cost of non‑compliance and ensure management review of penalties risk.
4. Refresh policies and procedures for reporting, approvals and payments, with clear roles for competent advice as needed.
5. Provide training for finance, operations and senior leaders on regulatory compliance and penalties exposure.
6. Consider external support, for example Competent Person support or health and safety support packages to embed governance improvements alongside health and safety management system upgrades like ISO 45001.

Embedding the change into management systems ensures ongoing compliance with UK health and safety law and regulatory expectations. For broader risk management, organisations may also consider risk assessment updates and training in health and safety risk management.