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HMRC internal manual

Enquiry Manual

Penalties: formal assessments and determinations: submission checklist

If you are discussing penalties with the taxpayer, before they have been authorised, you must

  • tell them that based on the information you hold you are considering penalties, but 
  • do not give any definite commitment in case there are unforeseen technical or practical reasons that may prevent the penalty being authorised.

Before you pass the case to the Authorising Officer you must take the following action.

If the penalty is under FA07/SCH24, FA08/SCH36, FA08/SCH41, follow the guidance at CH407000.

If you are considering any of the penalties listed in EM5201, you must also

  • complete an AO Report Form in accordance with the guidance at EM5206 
  • cover the points listed below in your submission
  • remember that best practice is to bear these points in mind from the time that culpable inaccuracies or failures are first established

Also make sure you have considered the following.

EM5207 When to take formal action.

EM5208 Transparency and HRA.

EM5209 Have the offences been established for each year?

EM5210 Have the maximum statutory penalties been established?

EM5211 Has the underlying tax etc been finalised?

EM5212 Do estimated assessments include an element of “in-built” penalty?

EM5213 Have the taxpayer’s means been considered?

EM5214 Has cost-effectiveness been considered?