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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: when to issue a warning letter

There is no legal requirement to issue warning letters.

If however it is the first time that a business has failed to comply and the impact of the non-compliance is not serious, a warning letter may be issued to advise businesses what steps they are expected to put in place in order to become compliant before a penalty is issued.

Compliance Officers need to adopt a risk based approach in deciding if a warning letter is appropriate. If the impact of the non-compliance is serious or the non-compliance was deliberate or persistent a warning letter will not be appropriate, even if it is the first time that a business has failed to comply.

The Risk Targeting Team should always be informed when a warning letter is issued so they can update the risk information for the business in question.

If a warning letter is issued but the weaknesses which have led to a breach are not corrected, a penalty is the most effective way to encourage future compliance.

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

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

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

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

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