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HMRC internal manual

Excise Civil Penalties Manual

Types of penalties: Example of how to issue daily penalties over a 28 date period

Timescale Action Advice to taxpayer
Day 1 Letter 1 Warn that they are liable to a 5% penalty plus a daily penalty of £20 per day 
Day 7 Letter 2 Warn that the daily penalty continues to accrue
Day 7 Assessment 1 Assess for 5% geared penalty plus £140 for daily penalties of £20 covering days 1 - 7
Day 21 Letter 3 Warn that the daily penalty is continuing to accrue, and that on day 28 they will be liable to further daily penalties for days 7 - 28
Day 28 Letter 4 Warn that distress or civil recovery action will be taken without further notice
Day 28 Assessment 2 Assess for a further £420.