Assessments and Appeals

The provisions for assessing and enforcing standard and daily penalties are included in FA 2008, Sch. 36, para. 46 and 49. Appeals against standard and daily penalties are dealt with in para. 48. There is no appeal against a tax-related penalty.

Assessment of Standard and Daily Penalties

A penalty assessment for standard or daily penalties cannot be made more than 12 months after the relevant date. The relevant date is defined by para. 46 (3) as:-

In a case involving an information notice against which a person may appeal, the later of:

  • The end of the period in which notice of an appeal against the information notice could have been given and
  • If notice of an appeal against the information notice is given, the date on which the appeal is determined or withdrawn, and
  • In any other case, the date on which the person became liable to the penalty.

 

The penalty assessment notice must show:-

  • The date of the assessment
  • The legislation under which the penalty is charged
  • What led to the penalty
  • If appropriate the period the penalty relates to

 

A penalty assessment for a daily penalty must show:-

  • The period it relates to
  • The number of days
  • The amount of the daily penalty
  • The total penalty

 

The penalty must be paid within 30 days of the later of:-

  • The date the notice was issued if an appeal is not made
  • The date any appeal is determined or withdrawn

 

It can be enforced as if it were income tax charged in an assessment.

Appeals against Standard and Daily Penalties

A person can appeal to the Tribunal against:-

  • The imposition of a standard or daily penalty and
  • The amount of the daily penalty

 

The appeal must:-

  • Be addressed to HMRC in writing
  • Reach them within 30 days from the date on which the penalty assessment was issued
  • State the grounds of appeal

 

If the appeal is not settled by agreement it will be heard by the Tribunal, which can:-

  • Confirm or cancel the penalty
  • Confirm the amount of the penalty or substitute another amount

Contact Kinsella Tax Investigations on 0800 471 4546 for specialist advice for your HMRC tax investigation

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