This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Compliance Operational Guidance

NPPS exceptions Nil penalty cases - De-minimus Level

For “no” and “nil” penalties do not create a penalty case within NPPS, see  CH407620.

Examples of ‘No’ or ‘Nil’ penalty that will not be charged include

  • MDTRC (Mistake Despite Taking Reasonable Care) - Where an inaccuracy in a document has been made despite the person having taken reasonable care to get things right, no penalty will be due.


  • Reasonable Excuse - A person will not be liable to a penalty for a non-deliberate failure to notify or wrongdoing if:
  1. They satisfy us they have a reasonable excuse and

  2. They put right their failure/action without reasonable delay after the excuse has ended.

For a non-deliberate failure to notify you will also need to work out if the disclosure was made less than 12 months after the time when tax first becomes unpaid because of the failure.

  • De-minimis- This tab is also used to record details where the penalty is less than £150 and so it is not cost effective to pursue a penalty, see COG87990.

While no penalty is due and you do not have to enter details on NPPS, an audit trail of your penalty decision and manager authorisation is required.  Up until the 08/03/2018  you must continue to use the existing process to record the nil penalty decison in the PDAC see  COG87480.