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HMRC internal manual

Compliance Handbook

How to do a compliance check: penalties for failure to comply with notices: daily penalties

If the failure to comply with your notice or the obstruction of your tribunal-approved inspection continues after you have assessed an initial £300 penalty, you need to consider assessing daily penalties, see CH26660 for information notice and CH29540 for data-holder notice.

Before you do this you should review the case with your line manager and try to make contact with the person to whom you sent the notice to see if you can help them to comply.

Where there has been a failure to comply with a notice under FA08/Sch36 or FA11/Sch23 you must get agreement from a penalty authorising officer see CH407050 to assess daily penalties. The authorising officer will normally be your manager unless the offence is that of deliberately obstructing a tribunal-approved inspection, in which case you must seek the agreement of an authorised officer, see CH260000.

Template IT03 in SEES Forms and Letters should be used to request daily penalties and record the authorising officer’s reply.

Where there has been a failure to comply with an excise information notice under CEMA/S118BA you must get agreement from an independent, trained manager at grade SO or above, to assess daily penalties. You can use the template above to make a report and obtain a reply.

When you decide the amount of daily penalty you should consider the factors set out at CH26680 for information notice and CH29540 for data-holder notice.

CH26700 explains what period to assess for daily penalties. You should not delay assessing daily penalties as the amount to be assessed may mount up quickly. You should consider assessing daily penalties 30 days after an initial penalty and each 30 days thereafter.

CH26860 and CH29730 explain the time limits within which you must issue a penalty assessment.

Penalty assessment charges will be created on SAFE by the SAFE Nominee, see CH270500.

When you assess the penalty you should send the person

  • a notice of assessment (with a copy to the agent if there is one)
  • a payslip (generated through Print Payslip using the SAFE charge reference. If you do not have access to a stand-alone printer use manual payslip PS1(BZ) and enter the SAFE charge reference).

You should send a copy of the notice with your penalty assessment, marking the copy to show what you still need the person to provide and/or produce in order to comply.

The following penalty notice templates are available on SEES Forms and Letters

  • IIP14 Notices - daily penalties
  • IIP15 Notices - daily penalties 2nd tranche
  • IIP18 Inspection - daily penalties
  • IIP19 Inspection - daily penalties 2nd tranche.