Approach to fines

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

The amount of a fine must reflect the seriousness of the offence (Sentencing Code, s.125(1)).

The court must also take into account the financial circumstances of the offender; this applies whether it has the effect of increasing or reducing the fine (Sentencing Code, s.125(2) and (3)).

The aim is for the fine to have an equal impact on offenders with different financial circumstances; it should be a hardship but should not force the offender below a reasonable ‘subsistence’ level. Normally a fine should be of an amount that is capable of being paid within 12 months though there may be exceptions to this.

The guidance in this section aims to establish a clear, consistent and principled approach to the assessment of fines that will apply fairly in the majority of cases. However, it is impossible to anticipate every situation that may be encountered and in each case the court will need to exercise its judgement to ensure that the fine properly reflects the seriousness of the offence and takes into account the financial circumstances of the offender.

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

For the purpose of the offence guidelines, a fine is usually based on one of three bands (A, B or C). The selection of the relevant fine band, and the position of the individual offence within that band, is determined by the seriousness of the offence. In some cases fine bands D – F may be used even where the community or custody threshold have been passed.

For an explanation of the meaning of starting point and range, both generally and in relation to fines, refer to either the guide to using pre-Sentencing Council guidelines or the guide to using Sentencing Council guidelines.

Maximum fines

A fine must not exceed the statutory limit. Where this is expressed in terms of a ‘level’, the maxima are:

*For offences committed before 13 March 2015 the level 5 maximum is £5,000

See the Criminal Practice Directions 5.16 for directions on dealing with cases involving very large fines in the magistrates’ court.

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

The seriousness of an offence determines the choice of fine band and the position of the offence within the range for that band. The offender’s financial circumstances are taken into account by expressing that position as a proportion of the offender’s relevant weekly income.

Where:

• an offender is in receipt of income from employment or is self-employed and

• that income is more than £120 per week after deduction of tax and national insurance (or equivalent where the offender is self-employed),

- the actual income is the relevant weekly income.

Where:

• an offender’s only source of income is state benefit (including where there is relatively low additional income as permitted by the benefit regulations) or

• the offender is in receipt of income from employment or is self-employed but the amount of income after deduction of tax and national insurance is £120 per week or less,

- the relevant weekly income is deemed to be £120.

Additional information about the basis for this approach is set out in Approach to offenders on low income.

In calculating relevant weekly income no account should be taken of tax credits, housing benefit, child benefit or similar.

No reliable information

Where an offender has failed to provide information, or the court is not satisfied that it has been given sufficient reliable information, it is entitled to make such determination as it thinks fit regarding the financial circumstances of the offender (Sentencing Code, s.126). Any determination should be clearly stated on the court records for use in any subsequent variation or enforcement proceedings. In such cases, a record should also be made of the applicable fine band and the court’s assessment of the position of the offence within that band based on the seriousness of the offence.

Where there is no information on which a determination can be made, the court should proceed on the basis of an assumed relevant weekly income of £440.

Where there is some information that tends to suggest a significantly lower or higher income than the recommended £440 default sum, the court should make a determination based on that information.

A court is empowered to remit a fine in whole or part if the offender subsequently provides information as to means (Sentencing Code, s.127). The assessment of offence seriousness and, therefore, the appropriate fine band and the position of the offence within that band are not affected by the provision of this information.

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

While the initial consideration for the assessment of a fine is the offender’s relevant weekly income, the court is required to take account of the offender’s financial circumstances including assets more broadly. Guidance on important parts of this assessment is set out below.

An offender’s financial circumstances may have the effect of increasing or reducing the amount of the fine; however, they are not relevant to the assessment of offence seriousness. They should be considered separately from the selection of the appropriate fine band and the court’s assessment of the position of the offence within the range for that band.

Out of the ordinary expenses

In deciding the proportions of relevant weekly income that are the starting points and ranges for each fine band, account has been taken of reasonable living expenses. Accordingly, no further allowance should normally be made for these. In addition, no allowance should normally be made where the offender has dependants.

Outgoings will be relevant to the amount of the fine only where the expenditure is out of the ordinary and substantially reduces the ability to pay a financial penalty so that the requirement to pay a fine based on the standard approach would lead to undue hardship.

Unusually low outgoings

Where the offender’s living expenses are substantially lower than would normally be expected, it may be appropriate to adjust the amount of the fine to reflect this. This may apply, for example, where an offender does not make any financial contribution towards his or her living costs.

Savings

Where an offender has savings these will not normally be relevant to the assessment of the amount of a fine although they may influence the decision on time to pay.

However, where an offender has little or no income but has substantial savings, the court may consider it appropriate to adjust the amount of the fine to reflect this.

Household has more than one source of income

Where the household of which the offender is a part has more than one source of income, the fine should normally be based on the income of the offender alone.

However, where the offender’s part of the income is very small (or the offender is wholly dependent on the income of another), the court may have regard to the extent of the household’s income and assets which will be available to meet any fine imposed on the offender (R v Engen [2004] EWCA Crim 1536 (CA)).

Potential earning capacity

Where there is reason to believe that an offender’s potential earning capacity is greater than his or her current income, the court may wish to adjust the amount of the fine to reflect this (R v Little (unreported) 14 April 1976 (CA)). This may apply, for example, where an unemployed offender states an expectation to gain paid employment within a short time. The basis for the calculation of fine should be recorded in order to ensure that there is a clear record for use in variation or enforcement proceedings.

High income offenders

The court should ensure that any fine does not exceed the statutory maximum for the offence.

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

Some offences are committed with the intention of gaining a significant commercial benefit. These often occur where, in order to carry out an activity lawfully, a person has to comply with certain processes which may be expensive. They include, for example, ‘taxi-touting’ (where unauthorised persons seek to operate as taxi drivers) and ‘fly-tipping’ (where the cost of lawful disposal is considerable).

In some of these cases, a fine based on the standard approach set out above may not reflect the level of financial gain achieved or sought through the offending. Accordingly:

1. where the offender has generated income or avoided expenditure to a level that can be calculated or estimated, the court may wish to consider that amount when determining the financial penalty;
2. where it is not possible to calculate or estimate that amount, the court may wish to draw on information from the enforcing authorities about the general costs of operating within the law.

Where an offence is committed by an organisation, guidance on fines can be found in the environmental offences guideline.

See the Criminal Practice Directions 5.16 for directions on dealing with cases involving very large fines in the magistrates’ court.

Where a guilty plea has been entered, the amount of the fine should be reduced by the appropriate proportion. Courts should refer to the Guilty Plea guideline applicable where the first hearing is on or after 1 June 2017 or before 1 June 2017.

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

Where an offender is to be fined for two or more offences that arose out of the same incident, it will often be appropriate to impose on the most serious offence a fine which reflects the totality of the offending where this can be achieved within the maximum penalty for that offence. ‘No separate penalty’ should be imposed for the other offences.

Where compensation is being ordered, that will need to be attributed to the relevant offence as will any necessary ancillary orders.

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

A fine and a custodial sentence may be imposed for the same offence although there will be few circumstances in which this is appropriate, particularly where the custodial sentence is to be served immediately. One example might be where an offender has profited financially from an offence but there is no obvious victim to whom compensation can be awarded. Combining these sentences is most likely to be appropriate only where the custodial sentence is short and/or the offender clearly has, or will have, the means to pay.

Care must be taken to ensure that the overall sentence is proportionate to the seriousness of the offence and that better off offenders are not able to ‘buy themselves out of custody’.

Consult your legal adviser if considering lodging fines or costs on the imposition of a custodial sentence.

Consult your legal adviser in any case in which you are considering combining a fine with a custodial sentence.

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

A fine is payable in full on the day on which it is imposed. The offender should always be asked for immediate payment when present in court and some payment on the day should be required wherever possible.

Where that is not possible, the court may, in certain circumstances, require the offender to be detained (see section 82 of the Magistrates’ Courts Act 1980 for restrictions on the power to impose imprisonment on default). More commonly, a court will allow payments to be made over a period set by the court:

1.  if periodic payments are allowed, the fine should normally be payable within a maximum of 12 months.
2. compensation should normally be payable within 12 months. However, in exceptional circumstances it may be appropriate to allow it to be paid over a period of up to three years.

Where fine bands D, E and F apply, it may be appropriate for the fine to be of an amount that is larger than can be repaid within 12 months. In such cases, the fine should normally be payable within a maximum of 18 months (band D) or two years (bands E and F).

When allowing payment by instalments payments should be set at a realistic rate taking into account the offender’s disposable income. The following approach may be useful:

If the offender has dependants or larger than usual commitments, the weekly payment is likely to be decreased.

The payment terms must be included in any collection order made in respect of the amount imposed.

Collection orders

Guideline users should be aware that the Equal Treatment Bench Book covers important aspects of fair treatment and disparity of outcomes for different groups in the criminal justice system. It provides guidance which sentencers are encouraged to take into account wherever applicable, to ensure that there is fairness for all involved in court proceedings.

The Courts Act 2003 created a fines collection scheme which provides for greater administrative enforcement of fines. Consult your legal adviser for further guidance.

Attachment of earnings orders/applications for benefit deductions

Unless it would be impracticable or inappropriate to do so, the court must make an attachment of earnings or (AEO) or application for benefit deductions (ABD) whenever:

• compensation is imposed (Courts Act 2003, sch. 5, para. 7A); or
• the court concludes that the offender is an existing defaulter and that the existing default(s) cannot be disregarded (Courts Act 2003, sch.5, para. 8).

In other cases, the court may make an AEO or ABD with the offender’s consent (Courts Act 2003, sch.5, para. 9).

The court must make a collection order in every case in which a fine or compensation order is imposed unless this would be impracticable or inappropriate (Courts Act 2003, sch.5, para. 12). The collection order must state:

• the amount of the sum due, including the amount of any fine, compensation order or other sum;
• whether the court considers the offender to be an existing defaulter;
• whether an AEO or ABD has been made and information about the effect of the order;
• if the court has not made an AEO or ABD, the payment terms;
• if  an AEO or ABD has been made, the reserve terms (in other words, the payment terms that will apply if the AEO or ABD fails). It will often be appropriate to set a reserve term of payment in full within 14 days.