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HMRC internal manual

Compliance Operational Guidance

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HM Revenue & Customs
Updated
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Supporting Guidance: employer compliance: guidance by subject: penalties: raising formal penalty determinations - general

You do not use the PDAC when calculating these penalties.

Before proceeding to raise formal penalty determinations it is good practice to discuss these with your Authorising Officer. The penalty decision must be authorised before you send a warning letter.

You must follow the guidance at EM5201 onwards paying particular attention to the checklist at EM5205.

When intending to raise formal penalty determinations you must first

You should either explain how the penalty has been calculated in the warning letter or a separate letter, before you issue the determination.

The subsequent process for raising formal penalty determinations will depend on the legislation and the type of penalty being sought.

  • Initial Penalties arising under S98(1)(a) or S98(1)(b) TMA 1970 - COG914185.
  • Daily Penalties arising under S98(a) or S98(1)(b) TMA 1970 - COG914190.
  • Failure to submit a P35/P11D(b) Return on time (First 12 month of lateness) - COG914190.
  • Failure to submit a P35/P11D(b) return on time (Over 12 months late) - COG914195.
  • Abated Penalties/Penalties of a Maximum Amount (except those detailed above).
  • Failure to submit a CIS monthly return on time (First 12 months of lateness - up to and including return due for month ending 05-10-11) - COG914290.
  • Failure to submit a CIS monthly return on time (Over 12 months late) - up to and including return due for month ending 05-10-11) - COG914295.
  • Failure to submit a CIS300 return on time from 06-10-11 - COG914297.

There are various documents and stencils to be completed throughout the process. You must make sure that where legislation is referred to or reproduced that it is accurate.

The links below provide some assistance in quoting the correct legislative references. You must make sure that you select the correct wording for the penalty you are seeking and that any subsequent changes in legislation are taken into account.

Where legislation has changed or the legislation required is not contained in the links provided assistance should be sought from the manager to make sure that the correct wording is used.

Information Power (Word 24KB) 

Penalty Offence (Word 30KB) 

Description of Penalty Offence (Word 31KB) 

Reproduction of legislation (Word 94KB) 

Nature of Penalty (Word 29KB) 

Penalty Provision (Word 32KB) 

Reproduction of Penalty Provision (Word 57KB) 

Penalty Amount (Word 29KB) 

Charging penalties under FA07/Sch 24 see CH408000