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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: settlement: culpability - warning of penalties

When all the facts are established you should

  • form an opinion on culpability.

In cases of doubt or difficulty

  • you should discuss with your manager.

Warning the Employer or Contractor of Penalties

  • Where a penalty is appropriate, you should tell the employer that a penalty may be sought in any settlement.
  • Record in the notes of meeting that the employer or contractor has been warned that a penalty may be sought and been provided with,

    • Human Rights Act advice (COG906070 - Human Rights Act 1998 (HRA))
    • Factsheet CC/FS19 COG906060 - Employer and contractor returns and ‘old’ penalties - When to issue.

You should not

  • make firm predictions about whether a penalty will be sought, or
  • give any indication of the amount of the possible penalty.