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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Information & Inspection Powers: Penalties: Penalty assessments: When to issue a penalty assessment

Normally you should issue the penalty assessment to the person as soon as possible (see CH26760) after the date

  • specified on the information notice for producing the documents or providing the information has passed and the information or documents have not been supplied, or
  • the deliberate obstruction occurs, or
  • you decide to impose daily penalties, or
  • the Upper Tribunal determined an amount of tax-related penalty, or
  • an inaccuracy in information provided or documents produced in response to the notice comes to your attention.

However, you must issue a penalty assessment within the following time limits:

For initial, daily and increased daily penalties you must issue the penalty assessment in the 12 months after the latest of

  • the end of the period during which the person can appeal where there is a right of appeal against the information notice, see CH24320, or
  • the date on which the appeal is finally decided or the person withdraws it when a person has appealed against the information notice, or
  • the date on which the person became liable to the penalty in any other case.

For tax-related penalties you must make the application to the Upper Tribunal within the 12 month period described above.

For penalties for an inaccuracy in information provided or a document produced in response to an information notice you must issue a penalty assessment within

  • 12 months of the date on which the inaccuracy first came to the attention of an officer of Revenue and Customs and 
  • 6 years of the date on which the person became liable to the penalty.

FA08/SCH36/PARA46 (2), (3) & (4)FA08/SCH36/PARA50 (7)

CEMA79/S118G