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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
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Penalties: penalty determinations: normal charging policy

General
No penalty due
Tax-related penalties

General

Liability to late-filing penalties:

  • one day after the filing date when the F1 occurrence is recorded, and the determination automatically issued 14 days later
  • three months after the filing date when the F2 occurrence is recorded, and the determination automatically issued 14 days later
  • 18 months after the accounting period end date when the TR1 occurrence is recorded, and as long as a revenue determination of tax payable has been issued, the penalty determination is automatically issued 14 days later
  • 24 months after the accounting period end date when the TR2 occurrence is recorded, and as long as a revenue determination of tax payable has been issued, the penalty determination is automatically issued 14 days later.

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No penalty due

On receipt of a late return, you may accept that the company has a reasonable excuse for late delivery and you are satisfied that no penalty is due for the return period.

Where you are reviewing the case after the late return has been logged but before automatic issue of the F1 penalty determination, use function MPEN to inhibit issue of the penalty determination by setting the no penalty required signal.

Where you are reviewing the case after the late return has been logged and penalty determination or determinations, have been automatically issued, use function PPEN to reduce them to nil.

If you do not want COTAX to issuer any more notices of penalty determinations for a return period, use function MPEN (Maintain Penalty Signals) to set the no penalty required signal.

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Tax-related penalties

You should review cases for which a return is still outstanding 18 months after the end of the AP and make revenue determinations if appropriate.

Tax related penalty determinations are automatically issued after you have raised a revenue determination unless you have selected one of the following from the options box presented at the end of the assessing function RAMA:

  • PPEN. COTAX takes you to that function
  • no penalty required, when COTAX sets the NPR signal to inhibit penalty issue for the AP.

See:

  • COM101020 and COM101130 for more information about the general COTAX assistance provided for this review
  • COM101031 for a list of functions to use in particular situations
  • COM101011 for legislation applying to this subject.