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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Information & Inspection Powers: Penalties: What is the penalty: Overview

Penalties may arise for

  • failing to comply with an information notice, see CH26220, or
  • deliberately obstructing an inspection that has been approved by the tribunal, see CH26240, or
  • concealing, destroying or otherwise disposing of documents, see CH26260, or
  • providing inaccurate information, or a document containing an inaccuracy, in response to an information notice, see CH26280.

For failure, obstruction and concealment etc, there are four types of penalty. These are

  • an initial penalty of £300, see CH26640 
  • a daily penalty of up to £60 a day for every day after the date the initial penalty is assessed until the information or documents are provided, see CH26660,
  • an increased daily penalty of up to £1,000 per day where there is a continuing failure to comply with an identity unknown notice, see CH26705, and
  • a tax-related penalty see CH26720.

Daily, increased daily or tax-related penalties cannot be charged unless an initial penalty in respect of the failure, obstruction or concealment etc has been assessed. The increased daily penalty cannot be charged unless daily penalties have already been charged.

There is a more serious penalty for some cases of concealing, destroying or otherwise disposing of documents where tribunal approval was, or was intended to be, involved, see CH27200.

For the penalty for providing inaccurate information or producing a document containing an inaccuracy in response to an information notice, see CH26780.

FA08/SCH36/PARA39

FA08/SCH36/PARA40

FA08/SCH36/PARA49A

FA08/SCH36/PARA50

CEMA79/S118G