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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: business records checks: penalties: issuing a penalty for poor record-keeping

The BRC Authorised Officer will:

  • review the robustness of the evidence to support the issue of a record keeping penalty
  • update the BRC1, authorising the penalty (if appropriate) and
  • return the papers.

You will

  • prepare a penalty notice letter (BRC16 - available via SEES Forms and Letters)
  • complete a SAFE referral stencil (IT14 - available via SEES Forms and Letters)
  • send the stencil with the penalty notice letter to the SAFE officer.

The SAFE officer will

  • create a charge on SAFE and
  • return the documents to you along with a payslip.

You will then

  • issue the BRC16 letter and payslip to the customer
  • update SA Notes (individuals/partnerships) or COTAX (companies) and
  • BF the case for 30 days.

If the customer appeals against the penalty determination, the appeal will be sent to either

  • the visiting officer (decision maker), or
  • the First Tier tribunal.

You should follow the guidance in the Appeals, Reviews and Tribunals Guide (ARTG) when handling any appeal.