This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Customs Civil Penalties Guidance

Penalty notice: considering whether to issue a penalty notice: example of a decision to charge a penalty

Claire has been trading for many years and is used to making declarations. She failed to make three declarations correctly 12 months ago and was given a warning letter. On a recent visit the CITEX compliance officer found that Claire had made errors on four further declarations. This is a contravention under Reason Code 051.

The compliance officer considers the following points.

  • It is less than 3 years since the earliest contravention and less than 2 years since we had evidence of facts about those contraventions. So we can issue a penalty if we consider one is appropriate. See CCPG11600 for details of time-limits.
  • Claire was responsible for making the declarations and so she is the person to be penalised.
  • The contravention falls within the category of poor compliance.
  • We have previously issued a warning letter but this has not resulted in improved compliance.
  • Claire has not presented any facts or arguments to suggest that there is a reasonable excuse for the contraventions.
  • Claire’s business is not substantial enough to have a HMRC Customer Relationship Manager.
  • Overall, action is needed to encourage future compliance. A warning letter has not had the desired effect and a penalty is more appropriate at this stage.

The CITEX Compliance officer decides it is appropriate to issue a penalty notice to Claire. They complete the Customs Penalty Action Checklist (CPAC), seek their managers’ authorisation, issue the penalty to Claire, save all the documents to Caseflow and send an e- copy of the penalty notice to CITEX CCP Network.