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HMRC internal manual

Civil evasion penalties for Customs, Excise and VAT

Civil evasion penalties for Customs, Excise and VAT: the rules for assessment and notification: customs legislation

Power to issue a demand notice

Section 30 of the Finance Act 2003 provides that where a person is liable for a civil evasion penalty the Commissioners may give to that person or his representative a notice in writing, a ‘demand notice’ demanding payment of the amount of penalty due.

Time limit on giving a demand notice

Section 31 of the Finance Act 2003 provides that a demand for penalties may not be given more than:

  • 20 years after the conduct giving rise to the liability to the penalty has ceased

two years after there has come to the knowledge of the Commissioners evidence of facts sufficient in the opinion of the Commissioners to justify giving a demand notice.