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HMRC internal manual

Compliance Handbook

Charging penalties: charging penalties: introduction: offshore asset based penalties: assessing the penalty

To charge a manual penalty you should

  • calculate the penalties due
  • complete an AO Report Form - Authorisation Stencil (available in SEES Forms and Letters) providing evidence as to why you consider a penalty is appropriate
  • complete the penalty notice and schedule (available in SEES Forms and Letters)
  • refer the case to the Authorising Officer.

The Authorising Officer will

  • consider the information provided
  • authorise the penalty (if appropriate) and
  • refer the papers back to you.

Once the Authorising Officer has approved the penalty, you must charge the penalties.

This will either be by formal assessment or can be included in a contract settlement if it is more cost effective and administratively convenient to do so.

If you are making a formal penalty assessment you should

  • prepare the penalty notice and schedule (available in SEES Forms and Letters)
  • complete a manual penalty stencil (available in SEES Forms and Letters)
  • email the stencil, penalty notice and schedule to the SAFE officer who will create the charge on SAFE, using the charge type ‘Taxes Acts Penalty’ and return the stencil to you advising the SAFE reference
  • update notice of penalty assessment with the charge reference and penalty schedule and issue to customer and
  • set a reminder for 30 days for appeal period.