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HMRC internal manual

VAT Civil Penalties

Insurance Premium Tax: Reconsiderations and appeals: Reconsideration and review

Please note: penalties under Schedule 7 Finance Act 1994 for failure to notify liability to register have been replaced by the Failure to Notify penalty introduced by Schedule 41 Finance Act 2008. The Failure to Notify penalty applies where an obligation to notify liability to register for IPT occurs on or after 01/04/2010. Penalties under Schedule 7 Finance Act 1994 will continue to apply where an obligation to notify occurs before 01/04/2010.

Please see the Compliance Handbook CH70000 for more information about the Failure to Notify penalty.

Please note: penalties under the Finance Act 1994 for failure to provide information and failure to produce records have now been replaced by penalties under Schedule 36 Finance Act 2008 where HMRC have requested information or documents on or after 01 /04/2010. If HMRC requested information or documents before 01/04/2010 the Finance Act 1994 penalties will continue to apply.

Please the Compliance Handbook CH20000 for more information about information and inspection powers.

If an insurer or an individual does not agree with our decision to issue a penalty or interest assessment, they can request a formal review of the decision.

To do so they must write to HMRC within 45 days of receiving the written notification of the penalty or interest.

Wherever possible a review should be carried out by an officer not involved in the original decision.

HMRC must notify the insurer or individual of the results of the review in writing within 45 days of the request for the review. Failure to meet this deadline will be taken as being a confirmation of the original decision to assess.

An insurer or individual may only ask for a further review if they have new facts or circumstances to put forward for consideration.

Only the outcome of a formal review may be appealed against by an insurer or an individual. This means they cannot appeal to a VAT and Duties Tribunal on any other IPT matter until after a formal review has been carried out by HMRC.