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HMRC internal manual

Compliance Handbook

HM Revenue & Customs
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Penalties for inaccuracies: how to process the penalty: suspension of a penalty: suspension period

You must check the date from which these rules apply for the tax or duty you are dealing with. See CH81011 for full details. 

The suspension period that you set must be based on the length of time the person needs to demonstrate that they have met the specific suspension conditions, see CH83150. In most cases, the appropriate way to check compliance with the specific conditions will be by reviewing the person’s records rather than the next return. So the filing date for the next return will not normally be a factor in setting the suspension period.

The legislation states that a suspension period can be up to two years from the date of the notice to suspend the penalty, see CH83180. But such a long suspension period will be rare.

Where the person has taken action to put things right before you have considered suspension, see CH83135, the suspension period may be shorter because the person has already spent time demonstrating their compliance with the suspension conditions.

FA07/SCH24/PARA14 (2)(b)