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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Debt and return pursuit: PAYE: penalty amendments

Penalty charges can be amended in one of four ways; either by a:

  • standover
  • discharge of the whole amount of the penalty
  • increase
  • reduction of part of the penalty.

Penalty increases

A penalty can be increased if either:

  • an underestimated amount was included in the original penalty
  • a penalty was issued before the end of the tax year it related to and the employer fails to pay another payment on time, increasing:

    • the total number of late payments for the year, and therefore
    • the penalty percentage rate.

Where you are increasing a penalty you should increase the SAFE charge and amend the issue date. For full details see the Late Payment Penalty User Guide.

Note: Only recalculate a penalty if the employer objects to the calculation or Employer Compliance provide the correct PAYE figures. If a return has been posted since the penalty was issued, do not re-calculate the penalty.

Once a penalty has been calculated and archived in the CAF, it can be retrieved and amended up to seven years later. To issue a revised Penalty Notice you will need to amend the SAFE charge.

For full guidance on how to make amendments see the Late Payment Penalty User Guide.

Issuing a revised notice

Once a penalty has been calculated and archived in the CAF, it can be retrieved and amended up to seven years later. To issue a revised Penalty Notice you will need to amend the SAFE charge.

For full guidance on how to make amendments see the Late Payment Penalty User Guide.