SM07230 - Special Measures: Representations: Special Measures Notice
Before HMRC issues a Special Measures Notice, a large business (SM02000) may submit representations explaining why the regime should not apply.
Representations must be made within 12 months of the Warning Notice being issued.
A designated HMRC officer (SM04000) must consider these representations when deciding whether to issue a Special Measures Notice.
A large business may also submit representations requesting removal from the Special Measures regime.
Example 1 – Valid representations made by a large business prior to the issuing of a Special Measures Notice
HMRC issues a Warning Notice to a large business on the 1 March 2026. The business has until 28 February 2027, the end of the 12-month period, to submit representations explaining why a Special Measures Notice should not be issued. On 15 February 2027, the business submits its representations within this timeframe. These are therefore valid, and a designated officer must consider them before issuing a Special Measures Notice.
Example 2 – Invalid representations made by a large business prior to the issuing of a Special Measures Notice
HMRC issues a Warning Notice to a large business on 1 March 2026. The business has until 28 February 2027 to submit representations. It submits them on 15 March 2027, after the deadline. These are therefore invalid, and HMRC is not required to consider them before issuing a Special Measure Notice.
FA2016/SCH19/PT3/PARA44(6)