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HMRC internal manual

Compliance Handbook

Charging penalties: recording and calculating penalties on the National Penalties Processing System (NPPS): about NPPS: what documents NPPS produces

NPPS produces the following letters and notices:

  • Penalty Calculation Summary - NPPS1. The NPPS1 is not appropriate for most cases and is inhibited by default, see CH408000.
  • Notice of penalty assessment/amended assessment - NPPS2.
  • Notice of penalty suspension/amended suspension - NPPS3.
  • Covering letter to send to an agent - NPPS10.

Letters produced in NPPS are issued by National Output Handling. After a letter has been issued a PDF copy of the letter will automatically be saved in the case document store.

Manual letters and notices NPPS2, NPPS3 and NPPS10 are available via NPPS Letters (SEES>Penalties Toolkit) for cases you cannot enter onto NPPS. These must only be used in exceptional cases, see CH407910. The letters should be completed manually and sent to the person.

Where a penalty assessment is reduced to nil, see CH407840, you must complete and send a manual NPPS2. NPPS does not issue nil assessments.

Note: The majority of manual letters available in NPPS Letters are used by the Central Penalties Team to manage suspensions, see COG90180.