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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: SA: daily penalties: the tribunal hearing for daily penalties

This Guidance applies to tax return years 2009-10 and prior

For 2010-11 onwards daily penalties are raised automatically without the need to apply to the tribunal for permission, for more information about daily penalties see SAM61230.

Purpose of the hearing

The purpose of the hearing is to consider a direction to impose daily penalties, of up to £60 a day for each relevant outstanding return.

Attending the hearing

The application is made by post to the Tribunals Service in Birmingham who will arrange the hearing of the application. HMRC does not attend the hearing.

Section 93(3) hearings are ex-parte. This means that the taxpayer or a representative does not attend the hearing.

You should prepare each case for the tribunal providing all the relevant information. The S93(3) application form and control sheet provide details of what information is required.

If the tribunal authorise the penalty they must sign the S93(3) application form.

After the direction is granted

You should issue an IDMS517 (SA520 for partnership cases), Notification of the direction, to the customer as soon as possible after the papers are returned from the Tribunals Service.

This provides the customer with a further 14 days after receiving the notification, in which to file the return before the penalty is imposed.

In partnership cases, only the nominated partner is notified of the direction.

At the same time as you issue the IDMS517 (SA520 for partnership cases) you should set the daily penalty signal on SA. This prevents the second fixed penalty from being charged.