CH405260 - Charging penalties: suspending penalties: notifying the suspension conditions
This page and chapter are under review as the relevant content is also published in the guidance chapters of the Compliance Handbook, within Compliance checks factsheets and in Compliance checks guidance. If you use particular pages regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know the specific content you find useful.
If you think a careless penalty is payable, you should try to discuss and agree with the taxpayer the improvements to their processes and/or records that can form the conditions that enable the penalty to be suspended, see CH405165.
You also need to give the taxpayer written notification of the suspension conditions. You do this by entering the conditions into the suspension information section onto NPPS and generating the NPPS100(S).
If you have not already agreed the conditions, you should generate an NPPS101 Agreement to the Suspension Conditions document when you create the Penalty Explanation Letter.
Whilst the NPPS101 provides for the person to sign and return it to confirm acceptance, this is not the only way this can happen. Any correspondence confirming acceptance can be accepted as formal agreement to the conditions.