SM04200 - Special Measures: Notification letters: Special Measures Notice
A Special Measures Notice is issued if a large business(SM02000) receives a Warning Notice and continues to display unco-operative behaviour without making improvements. The notice confirms that the business has entered the Special Measures regime. The notice must detail the reasons why the large business has been placed into Special Measures.
Where a large business is subject to a Special Measures Notice, it may may be liable for sanctions (SM05050) in relation to inaccuracies in documents provided to HMRC.
FA2016/SCH19/PT3/PARA42-43
FA2016/SCH19/PT3/PARA42(5)
Conditions for issuing of a Special Measures Notice
A designated HMRC officer (SM04000) may issue a Special Measures Notice to a large business where the following criteria are met:
- a Warning Notice has been issued and not withdrawn
- at least 12 months have passed since the Warning Notice was issued
- no more than 15 months have passed since the Warning Notice was issued
Additionally, where HMRC have reason to believe unco-operative behaviour persists, or would have persisted within 6 months of the expiration of the Warning Notice, HMRC may issue a Special Measures Notice, if 9 months since the expiration of the previous notice has not elapsed(SM04400)
A large business that has received a Special Measures Notice may make representations to HMRC prior to the end of the 24-month period following the issuing of the Special Measures Notice. HMRC must consider these representations prior to issuing a Confirmation Notice to the large business.
FA2016/SCH19/PT3/PARA42(1)-(4)
Time period a Special Measures Notice is in effect
A designated HMRC officer(SM04000) may withdraw a Special Measures Notice at any time by giving a further notice to the large business(SM02000) confirming the withdrawal.
Unless withdrawn earlier, a Special Measures Notice expires at the of the period of 27 months from the day it was issued.
FA2016/SCH19/PT3/PARA43(1)(a)-(b)
Withdrawal of Special Measures Notice
A designated HMRC officer(SM04000) may withdraw a Special Measures Notice at any time by giving a further notice to the large business(SM02000) at any time within the 27-month period from issue of the Special Measures Notice.
FA2016/SCH19/PT3/PARA43(1)(a)