If a standard penalty has been charged a daily penalty can be charged for every day the failure or obstruction continues after the standard penalty has been charged.
The amount of the daily penalty fixed by FA 2008, Sch. 36, para. 40 is an amount not exceeding £60 for each day the failure or obstruction continues.
HMRC accept that if a person has destroyed or disposed of a document it would be inappropriate to charge a daily penalty. However, if they think that the standard penalty does not provide a sufficient penalty, they will consider charging a tax-related penalty.
HMRC will also consider charging a tax-related penalty if they think that the daily penalty is insufficient.
A daily penalty will be charged at regular, short intervals to encourage compliance and to prevent the amount becoming substantial. Officers are instructed that no daily penalty should be charged in respect of the period from the date of the last imposition of the daily penalty until the date the compliance check is completed or the document was provided.
When deciding the amount of the penalty HMRC will take account of:-
They will keep a record of their reasons for deciding the amount of the penalty to defend it in any appeal proceedings.
If a person is convicted of a criminal offence under Part. 8, they cannot also be charged a standard, daily or tax-related penalty (para. 52).
Enforcement of a tax-related penalty is dealt with in para. 51. it must be paid within 30 days of the date the penalty was notified and it can be enforced as if it were income tax charged in an assessment.
There is no provision for appealing against a tax-related penalty.