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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
, see all updates

Data gathering: Penalties: Overview

A data-holder can be charged penalties if they fail to comply with a data-holder notice.

Depending on how long the data-holder fails to comply with the data-holder notice, the data-holder can be liable to

  • an initial fixed penalty of £300 when they fail to comply with the data-holder notice
  • daily default penalties of up to £60 per day for failures that continue after the initial fixed penalty has been charged
  • increased daily default penalties of up to £1,000 per day if they are approved by the tribunal after the £60 daily default penalties have been charged, and
  • an inaccuracy penalty of up to £3,000 where the data-holder carelessly or deliberately provides inaccurate information or documents.

An officer can allow further time for a data-holder to comply with a data-holder notice before penalties are charged.

We cannot charge initial fixed penalties and daily default penalties where the person satisfies us, or the tribunal, that there is a reasonable excuse for the failure.

When a person has incurred a penalty, we issue a penalty assessment. The person is entitled to a review and can appeal. Where we are unable to resolve an appeal by internal review, or if the person chooses not to have an internal review, the first-tier tribunal will hear the appeal.

For operational guidance on charging penalties, see CH206480.

FA11/SCH23