Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Enquiry Manual

HM Revenue & Customs
, see all updates

Penalties: determination procedures: collection

Self Assessment

Income tax and capital gains tax SA penalties raised on form 394 are collected through the taxpayer’s Self Assessment (SA) statement of account.

The penalty should be entered on the SA system using Create Sundry Charge. In the Charge Due Date field enter the due and payable date for the penalty. This will be 30 days from the date of issue of the penalty notice.

You should also record the type of penalty, for example ‘S95 Tax Geared Penalty’ in SA notes.


All other penalty determinations raised on form 394 are collected through SAFE. The penalty charge should be entered on SAFE by the SAFE nominee under the charge type 394 CT penalty. If you work in Local Compliance, note that this type of SAFE charge is not raised by the Centralised SAFE Team.

If you amend a penalty which is held on SAFE you must issue written instructions to the SAFE nominee, who will amend the charge using SAFE role Maintain Charge.

If you amend a penalty that was raised before the introduction of SAFE and was not automatically transferred to SAFE, you must complete a form 397(C), which is available in SEES, and issue this to the Miscellaneous Charges Unit in Shipley. They will amend the penalty charge.

Where, exceptionally, the amount discharged has already been paid you must complete and issue the SAFE repayment stencil to the Miscellaneous Charges Unit in Shipley advising them how any repayment is to be dealt with.

EM1020 tells you how to contact the Miscellaneous Charges Unit and the Centralised SAFE Team.

You should not issue the determination until you have obtained the SAFE charge Ref from the SAFE nominee. When you receive this you should send a covering letter with the determination explaining to the person that they will be send a payslip but it is recommended that they pay electronically from our “Paying HMRC” webpage. You should clearly identify the SAFE Charge Ref in your letter and tell the person that they must use this as the payment reference irrespective of how they chose to pay.