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HMRC internal manual

Compliance Handbook

Information & Inspection Powers: Penalties: What is the penalty: Failure, obstruction, concealment etc: Amount of daily penalty

You can assess a daily penalty of up to £60 for each day that the failure, obstruction or concealment continues after the date the initial penalty was assessed.

Daily penalties would be inappropriate where the document was no longer available for production. In those cases you should consider a tax-related penalty.

In the majority of cases a penalty at the lower end of the range will probably be sufficient for a first assessment of daily penalties. However, where appropriate, you should consider a higher amount up to the maximum.

When you are deciding the level of daily penalty to assess you will need to consider

  • the amount of tax that appears to be at stake, and
  • the nature and extent of any obstruction, or
  • the nature and extent of the information and documents requested,
  • the problems facing the person in obtaining all the information and documents,
  • the degree of co-operation given to date and
  • the person’s general compliance history.

You should fully record the basis on which you have arrived at the amount of the daily penalty because you may need to justify it before the First-tier Tribunal if the person appeals.

FA08/SCH36/PARA40 (2)