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

HMRC internal manual

Excise Civil Penalties Manual

HM Revenue & Customs
, see all updates

How to apply penalties: Decision making

When faced with conduct which is liable to a fixed or geared penalty you must ask yourself the following questions before arriving at a decision

  • Is the contravention potentially liable to a fixed or geared penalty?
  • Is the contravention a first breach? If so a warning notice should normally be considered
  • Has the taxpayer got a reasonable excuse for the conduct, see ECP2700? If not
  • Would the issue of a civil penalty have a greater compliance effect than other possible action

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)