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HMRC internal manual

Compliance Handbook

Data gathering: Penalties: Penalty assessments: Overview

If a data-holder fails to comply with a data-holder notice, they may become liable to

  • initial fixed penalty,
  • daily default penalties, or
  • inaccuracy penalties.

The tribunal may also decide to allow the use of increased daily default penalties.

When we assess a penalty, we send the data-holder a penalty assessment notice.

The assessment notice tells the data-holder what they owe and when they must pay it. The penalty is enforceable as if it were income tax charged on an assessment. It does not matter which tax the data-holder notice relates to, all penalties are enforced using the income tax system.

FA11/SCH23/PARA35