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HMRC internal manual

Debt Management and Banking Manual

RLS: Information powers: Contact details for debtors: Assessing the penalty

If the third party fails to comply with the notice they are liable to pay a penalty of £300. The decision to charge the penalty will be made at Senior Officer grade. The Tracing Unit will raise these penalties on SAFE under charge type ‘Penalty under Sch 36 - FA 2008’.

If the third party has not responded to the formal notice, the Tracing Unit has not been able to make contact with them or no good reason for failing to respond has been provided, they will assess a penalty under paragraph 46 of Schedule 36 to the 2008 Finance Act and issue a penalty notice. This will include details of how to pay, a payment slip and details of the appeals process.

If the penalty remains unpaid after the payment reminder cycle has completed, it will appear on the SAFE Local Action work list for the National Debt Pursuit Unit (NDPU) who will carry out recovery and enforcement action. NDPU will follow up initially by a reminder letter or telephone call.