CH407720 - Charging penalties: recording and calculating penalties on the National Penalties Processing System (NPPS): creating a penalty case in NPPS: input penalty details
Once you have created a penalty case in NPPS, you must input details of the penalty.
Maintain tax periods
Maintain penalty details
Penalty lines
Adjustments
Maintain tax periods
This screen allows you to input the period or periods for the penalty or penalties arising from your compliance check. Each penalty and each penalty period that it relates to must be recorded separately, for example
- 6 April 2010 to 5 April 2011
- 6 April 2011 to 5 April 2012
- 6 April 2012 to 5 April 2013.
A tax period is the period for which a penalty is charged. For inaccuracy type penalties the tax period is the date covered by the return, for example 6 April 2010 to 5 April 2011.
The penalty case period is the period covered by all the tax periods for which you want to record an inaccuracy, failure or wrongdoing, for example 6 April 2010 to 5 April 2013.
Select submit.
Maintain penalty details
In the Maintain Penalty Details screen you will be asked ‘Will this Penalty form part of a Contract Settlement?’ You must make sure you select the correct option to indicate whether or not the penalty will be included in a contract settlement.
The default setting will always be ‘No’. You must change this to ‘Yes’ if you are including the penalty in a contract settlement (Direct Taxes only).
If you do not select the correct option you can amend this up to the point the Notice of Penalty Assessment (NPPS2) is authorised. Once the penalty has been authorised you will not be able to change this option, see CH407880.
Penalty lines
For each tax period for which a penalty is to be charged a separate penalty line must be completed. Select the icon under Penalty Lines to input penalty details as necessary.
Where the penalty type and type of behaviour are the same you can use Bulk Create Penalty from the Take Action dropdown menu.
Using Bulk Create Penalty Lines means that details of the penalty type and behaviour only need to be entered once and then applied to as many periods as appropriate.
Additional relevant penalty details for each tax period will need to be entered separately.
Adjustments
Adjustments to the penalty should be actioned after the penalty line or lines have been completed.
To do this, select Adjustments.
For each penalty line that you wish to adjust you must complete the following fields:
- Description
- Adjustment Type
- Amount
- Note.
If you need to delete a tax period, select Maintain Tax Periods from the Take Action dropdown menu and select the dustbin to the right of the tax period.
Select submit to return to the Maintain Penalty Details screen.
Select the notepad icon to the right of the tax period to open the Detail field.
Note: Fields with an asterisk next to them are mandatory and must be completed. If you try to proceed without entering information in a mandatory field, a red cross will appear next to the box. You will not be allowed to progress to the next stage until all the mandatory boxes are completed.