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HMRC internal manual

Enquiry Manual

From
HM Revenue & Customs
Updated
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Penalties: formal determinations: approval given

When a penalty assessment or determination has been authorised you must send an explanation letter to the taxpayer which gives sufficient information for them to understand the reasons for our decision. If the only penalties to be assessed are under FA07 or FA08, you should issue a NPPS100 Penalty Explanation Letter, which is available in SEES.

If other penalties are to be determined, the covering letter should also explain

  • that you are going to issue a formal decision notice imposing a penalty but you will take account of any new information before you do this
  • how you calculated the penalty
  • how you arrived at your decision about the behaviour
  • how you arrived at your decision about any penalty abatements

If an NPPS100 is not required because there are no penalties under FA07 or FA08, you should allow the taxpayer the same amount of time to reply as you would have allowed for them to reply to an NPPS100, see CH408050.

See CH407700 for guidance about how to issue a penalty assessment.

See EM5250+ for guidance about how to issue a penalty determination.