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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Charging penalties: authorisation: NPPS action

All penalties must be recorded and authorised in the NPPS. This should normally be done when you have determined whether you intend to assess the penalty or have agreed to include the penalty in a contract settlement.

In the NPPS, authorisation is a two stage process requiring approval and authorisation.

Caseworker action

You should have created and calculated your penalty or penalties in NPPS, following the guidance at CH407500.

The case will appear in your workbasket showing that the calculation is complete and that approval is required. You need to

  • ‘confirm request for approval’
  • enter the authorising officer’s PID in the Approving Officer User ID field
  • select Submit.

The authorising officer will then be asked to approve the penalty calculation and the case will return to your workbasket.

You must then submit the case for authorisation by

  • selecting ‘confirm request for authorisation’
  • entering the authorising officer’s PID in the Authorising Officer User ID field
  • select Submit.

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Authorising officer action

Step 1 - Approval

Check the figures in the NPPS are the same as those in the PDAC which have already been authorised. Select

  • ‘approve the penalty calculation’ or
  • if you want to reject the case select ‘Reject Penalty’ from the dropdown menu. Check the box to confirm you have rejected the request and use the free text box to add the reasons for rejection.

The case will be sent to the caseworker’s workbasket.

Step 2 - Authorisation

When the caseworker is ready to ‘issue the penalty assessment’ (this step will also be appropriate in contract settlement cases) they will resend the case to you for authorisation in NPPS. As you have approved the penalty you only need to take the action ‘authorise penalty’ and the case will go back to the caseworker’s workbasket for them to take the final steps in the penalty process.