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HMRC internal manual

Compliance Handbook

Calculating penalties: special reduction: submission to TALA

You must not give a special reduction without authority from TALA to do so.

You must submit the case to Process Design & Excellence, Tax Administration, Litigation and Advice (TALA) if you consider that a special reduction may be applicable or if a person disputes your refusal to give a special reduction. In all cases the submission to TALA must be authorised by your line manager. Your manager must check that the penalty decisions already taken would be authorised.

You must send the following documentation electronically to your manager:

  1. A summary of the decisions and considerations leading to the penalty chargeable, and a copy of the penalty calculation electronically to TALA.
  2. A summary of the person’s representations (if any) about special reduction.
  3. A summary of your considerations, decision and reasoning about whether you consider that a special reduction is appropriate or not.

Managers must forward this documentation to Central Policy, (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  together with a statement that they consider that special reduction should be considered.

In most cases TALA will need to see the compliance check records in due course, and so these should be kept available.