CH401150 - Charging penalties: introduction: penalties for Failure to Notify - FA08/Sch41
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Whenever you discover a failure to notify that has resulted in any Potential Lost Revenue (PLR), see CH72600, you must establish the behaviour that led to it to determine if the person is liable to a penalty. A penalty will be payable unless the person has a reasonable excuse for the failure, see CH71500.
You should be familiar with the contents of the technical guidance that starts at CH70000, which sets out what taxes and tax periods Sch41, FA08 applies to, in what circumstances a penalty is payable, and who is liable to pay it.
This guidance is about how you calculate and charge penalties.
Sch41, FA08 penalties must be recorded and authorised on the National Penalty Processing System, see CH407500.
However, ‘No’ and ‘Nil’ penalty cases do not need to be entered on NPPS, but you must record the reason in Caseflow/CRMM by selecting the appropriate reason from the dropdown menu (pre-populated with ‘Not Applicable’) in response to the question ‘NPPS applies?’. For more information on this see CH407620. You will also need to record the approval of this decision by the authorising officer.
This applies to all penalties, for example where there is a reasonable excuse. This is because decisions not to charge penalties also need authorisation, and also so that management information can be gathered to show that penalties are applied consistently.
A failure to notify that occurred before 1 April 2010 must be authorised and charged under the relevant old legislation and pre-existing procedures.