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HMRC internal manual

Compliance Handbook

Penalties for VAT and excise wrongdoing: other penalty issues: company and company officer penalties: notice of liability

When assessing a penalty on the company for a deliberate wrongdoing, you must notify each liable officer about their individual liability to pay all or part of the penalty, following the guidance at CH406300.

The penalties for wrongdoing provisions apply to a liable officer in the same way as they apply to the company. This means that the same procedures and safeguards apply.

A liable officer can therefore appeal against

  • your decision to pursue them for all or part of the penalty assessed on the company, as set out in the above notice, and
  • the amount of the penalty you have allocated to them.

They cannot however specifically appeal against your decision that they have gained or attempted to gain personally from the deliberate wrongdoing.

The liable officers do not individually have the right to appeal against the amount of the penalty assessed on the company. This can only be appealed by the company or the administrator/insolvency practitioner, if they are being wound up.

You will find detailed guidance about the review process that applies to appealable decisions in the Appeals, Reviews and Tribunals Guide (ARTG).

FA08/SCH41/PARA22 (1)