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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: new penalties processes for DMB: responsibilities

Compliance caseworkers

Compliance caseworkers are responsible for assessing penalties and will, where possible, discuss the penalty position with the taxpayer before raising them.

They use the National Penalty Processing System (NPPS) to:

  • record information about the taxpayer’s behaviour that led to the penalty
  • carry out complex penalty calculations
  • issue the penalty calculation summary to the taxpayer and if appropriate
  • issue the penalty assessment.

All of this information is recorded on NPPS.


Debt Management and Banking are responsible for processing payments and the recovery of unpaid penalties.


These penalties are appealable and appeals need to be made to the Compliance officer who raised the penalty.

Time to Pay

You can include these penalties in time to pay arrangements following existing guidance.


These penalties do not currently attract late-payment interest or repayment supplement.


You should deal with any RLS items received in accordance with existing guidance.


All enquiries, except payment enquiries, should be directed to the appropriate Compliance officer.