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HMRC internal manual

Compliance Handbook

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HM Revenue & Customs
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Charging penalties: recording and calculating penalties on the National Penalties Processing System (NPPS): amending or cancelling a penalty case in NPPS: appeals: suspend a penalty

You may need to reopen a case where suspension was not offered, but following the outcome of the appeal you can suspend the penalty.

Reopen the case in NPPS using the ‘Appeal’ function, see COG91520.

Enter details of the appeal, see COG91540, including the amount of the appeal to be stood over, see CH407850.

To stand over a VAT penalty, you will need to set the ‘appeal indicator’ on the VAT mainframe.

Once you have resolved the appeal with the person, select Apply variation to Penalty from the Take Action dropdown menu, see COG91640. Submit.

This will take you back to the Maintain Penalty Details screen where you will input details of the suspension, get the case approved and then authorised, see CH407740.

The NPPS will generate an amended Notice of Penalty Assessment (NPPS2) and a Notice of Penalty Suspension (NPPS3) to be sent to the person.

Where a charge has been created on SAFE, details of the amendment will be sent from NPPS to SAFE.

If you suspend a VAT penalty you will need to update the VAT mainframe, see CH407960.

You can then resolve the case, see COG91040.