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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Charging penalties: interaction between penalties: summary of interaction situations and action needed

Taxes Interaction Action needed
     
ANY A failure to notify penalty and a late payment surcharge are payable on the same tax liability. Discharge the surcharge.See CH404425 for further information and an operational example.
IT and CGT (excluding PAYE)CIS An inaccuracy or under assessment penalty is payable and any automatic tax geared failure to file penalty was incurred.  The inaccuracy penalty must be reduced by the amount of the 5% tax geared failure to file penalty that is charged automatically by SA or CIS on the additional tax when a return is amended or a discovery assessment is raised.See CH404450 for further information and an operational example.
IT and CGT (excluding PAYE)CIS Six month and 12 month tax geared failure to file penalties exceed 100% of the liability to tax. If you establish a penalty for failure to file and deliberate withholding of information that is more than 95% of the liability to tax, you will have to make an adjustment in NPPS to ensure that the two tax geared penalties for failure to file do not exceed 100% of the tax liability. See CH404475 for further information and an operational example.
ITIHT FA07/Sch24/Para1A inaccuracy penalties charged on more than one person exceed 100% of the liability to tax. Reduce each penalty proportionately.See CH404500 for further information and an operational example.
IT, CGT and Class 4 NICs An inaccuracy penalty and a late payment surcharge are payable. Assess the full inaccuracy penalty.Check the SA system after 58 days to find out whether a surcharge has been incurred.Discharge the surcharge when the inaccuracy penalty has become final, for example, after the end of the appeal period or the conclusion of the appeal.See CH404525 for further information and an operational example.
VAT An under assessment penalty and VAT default surcharge are payable. The under assessment penalty must be reduced by the amount of a default surcharge.See CH404550 for further information and an operational example.
Excise A failure to notify penalty is payable and a penalty under FA1994/S9 was incurred. Reduce the failure to notify penalty by the amount of the FA94/S9 penalty.See CH404575 for further information.
Excise Penalties for misuse of rebated oil apply under both FA08/Sch41 and FA1994/S9. Deduct from the Potential Lost Revenue the duty on the fuel in the vehicle on the day of the detection.See CH404600 for further information and an operational example.
Excise Misuse of rebated oils penalties exceed 100% of the liability to tax. Reduce each penalty proportionately.See CH404625 for further information and an operational example.