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HMRC internal manual

Compliance Handbook

Penalties for Inaccuracies: How to Process the Penalty: Suspension of a penalty: Notice to suspend a penalty: Content of the notice

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

A notice to suspend a penalty must be in writing to the person and must specify

  • what part of the penalty is to be suspended, see CH83160
  • the period of suspension (not more than two years), see CH83170, and
  • the conditions of suspension, see CH83150.

You must make clear in the notice to suspend a penalty what action the person needs to take in order to satisfy HMRC and the date by which the action must be taken. Where you specify making returns or payments as conditions, the notice should clearly state the types of returns or the nature of payments.

The notice must also contain guidance about appealing against the suspension conditions.

You can find a notice to suspend a penalty (NPPS3) in

  • SEES / Penalty Toolkit / NPPS Letters or
  • SEES / Forms and Letters / NPPS letters and forms.

For Operational Guidance about suspending penalties, see CH405000.

FA07/SCH24/PARA14 (2)