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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
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Penalties for Inaccuracies: How to Process the Penalty: Suspension of a penalty: Notice to suspend a penalty: Overview

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

Formal assessments

Where formal assessments are made, and you have decided that it is appropriate to suspend a penalty for a careless inaccuracy, the penalty has to be assessed and then suspended, see CH83182.

You give effect to a suspension by issuing a formal notice alongside the assessment. This is known as a notice to suspend a penalty. A notice to suspend a penalty must contain specific information to tell the person

  • what is being suspended,
  • under what conditions it is being suspended, and
  • how long it will be suspended for, see CH83183.

Contract settlements

There is a different approach where a contract settlement stands in place of a formal assessment, see CH83184, but you still need to make sure the person is told

  • what is being suspended,
  • under what conditions it is being suspended, and
  • how long it will be suspended for, see CH83183.

FA07/SCH24/PARA14 (2)