CH271100 - How to do a compliance check: penalty for an inaccuracy in response to notices: introduction and scope

Guidance at CH26280 sets out the circumstances when a person may have to pay a penalty under Paragraph 40A of Schedule 36 Finance Act 2008 and Schedule 23 of Finance Act 2011

  • giving HMRC inaccurate information, or
  • giving HMRC a document containing an inaccuracy and not telling us about it when responding to a notice.

The maximum penalty is £3000 for each inaccuracy, see CH26780.

You cannot assess this penalty unless your notice contains the message:

“Please take care when doing what this notice asks. If you carelessly or deliberately provide inaccurate information or produce a document containing an inaccuracy, we may charge you a penalty of up to £3,000 for each inaccuracy. We will not charge you a penalty if you tell us about the inaccuracy at the time you provide the information or produce the document. If you later find an inaccuracy, you must tell us about it without delay.”

This part of the guidance tells you about

  • why an inaccuracy in a document should be disclosed to you, see CH271200
  • the interaction between these penalties and Schedule 24 FA07 penalties, see CH271300
  • how to decide on the amount of the penalty to assess, see CH271400
  • the authorisation and charge creation procedure, see CH271500.