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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: compliance revenue recording: formal charges

Where it is not possible to include omissions in a contract settlement for any employer / contractor liabilities, you will need to consider raising

for any employer/contractor liabilities.

Where appropriate you should

  • consider formal penalty determinations and
  • seek advice from Tax Administration Litigation & Advice prior to taking any action (COG914175).

The case should remain open until any appeal has been resolved (COG915170 - Section 8 Decisions Appeals) and

  • the determination or decision is finalised or

where a formal penalty determination is being sought

  • the date on which the penalty determination is finalised.

You should record on Caseflow

  • the full amount ofcompliance revenue included in the determination or decision
  • the interest up to the earlier of the date the case is closed or the date payment was made
  • the amount of the penalty, if appropriate
  • current year adjustment where appropriate
  • consider Future Revenue Benefit where appropriate (see COG915640).

But where it is known that the duties will not be paid, unless COG915620 and COG915690 apply, no compliance revenue should be scored.

It should be noted that preference will always be to settle by a voluntary contract settlement. Therefore after the issue of determinations or decisions, should an employer wish to withdraw an appeal and settle by contract settlement this should be accommodated. You must ensure that any determinations or decisions raised are discharged and cleared in SAFE.