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HMRC internal manual

Enquiry Manual

Penalties: Appeals: Action

TMA70/S103A, FA07/SCH24/Para13, FA08/SCH36/Para49, FA08/SCH41/Para16

The penalty charged by a determination or assessment is due and payable 30 days after the date of issue of the notice of determination unless an appeal is made against it.

For years of assessment up to and including 1995-96 no interest is chargeable. For 1996-97 and later years interest is charged on penalties that that relate to self-assessment obligations.

On receipt of an appeal against a penalty

On receipt of an appeal against a penalty you should immediately take the following action.

Penalties charged through NPPS

When the penalty that has been charged using NPPS, you must follow the guidance at CH407850 to stand over the penalty charge.

Schedule 36 Penalties

When the penalty has been charged using SAFE, you must follow the guidance at CH270600

Penalties that have been charged through Self-Assessment

If the penalty has been charged through Self-Assessment, you must either formally or informally, depending on the reason for the appeal, stand over the full amount using function ‘maintain standovers’, see SAM11010.

In non-Self-Assessment cases

If the taxpayer is not Self-Assessment and the penalty was not charged through NPPS but charged through SAFE, see EM5254, you must ask the SAFE Nominee or Centralised SAFE Team to stand over the charge.

If the taxpayer is proposing, (or is advised by his agent) to pay part of the charge, the amount proposed to be paid should not be stoodover.

Penalties that have been charged through COTAX

When the penalty has been charged through COTAX, follow the guidance at COM10001.

Informal Standovers

When a charge is informally stoodover the debt will not normally be visible on DMB’s systems. Where you intend that an overpayment or re-allocation of a payment is to be set off against all, or part of a debt that has been informally stoodover, you must inform DMB that the liability has now been quantified and that it is not subject to a dispute or appeal.