AH3903 - Appeals Handbook: Appeals against penalties and surcharge: types of penalty: Failures other than failure to make a return

Failure to notify chargeability (TMA70/S7(8)) and FA98/SCH18/PARA2(3))

These are tax geared penalties determined by an officer of the Revenue & Customs. The right of appeal is to the General Commissioners, subject to the appellant’s right to elect for the appeal to be heard by the Special Commissioners. Frequently, there will be no formal penalty determination because penalties will be included in a contract settlement. For more guidance see EM4550+.

Failure to keep records (TMA70/S12B(5), TMA70/SCH1A/PARA2A(4) and FA98/SCH18/PARA23(1))

These are maximum penalties determined by an officer of the Revenue & Customs. The right of appeal is to the General Commissioners, subject to the appellant’s right to elect for the appeal to be heard by the Special Commissioners. These penalties are seldom imposed and only after approval has been obtained under EM4650+.

Failure to furnish information etc required by a notice or provision specified in TMA70/S98

The notices and provisions specified in TMA70/S98 include

• a notice issued under TMA70/S16
• a notice issued under TMA70/S20
• a return of “benefits” on form P11D.

More guidance is in EM4901+.

An initial penalty of up to £300 for the failure to deliver a return or document, or to furnish particulars, information, a certificate or record etc required by a notice or provisions specified in TMA70/S98 may be awarded by the Commissioners under TMA70/S98(1)(i). For more guidance on penalty proceedings before the Commissioners see AH3810.

The right of appeal against the initial penalty is to the High Court in England and Wales or to the Court of Session, in Scotland. If you receive an appeal against a penalty determined by the Commissioners contact Cross Cutting Policy (London Technical Unit) for advice.

Once the Commissioners have awarded an initial penalty further, daily, penalties can be determined by an authorised officer of the Revenue & Customs. The right of appeal against the imposition of daily penalties is to the General Commissioners, subject to the appellant’s right to elect for the appeal to be heard by the Special Commissioners.

Failure to comply with a notice to supply documents or information required by a notice issued under TMA70/S19A or FA98/SCH18/PARA27.

Guidance on failure to comply with an SA information notice is at EM4700+.

An authorised officer of the Revenue & Customs can determine an initial penalty of £50 for the failure (TMA70/S97AA(1)(a) and FA98/SCH18/PARA29(1)(a)) and a further daily penalty of up to £30 a day if the failure continues. The right of appeal is to the General Commissioners, subject to the appellant’s right to elect for the appeal to be heard by the Special Commissioners.

A daily penalty in excess of £30 for continued failure to comply can be determined by the Commissioners. ( TMA70/S97AA(2)(b) and FA98/SCH18/PARA29(2)(b)). Guidance on penalty proceedings before the Commissioners is at AH3805. Where the penalty has been determined by the Commissioners the right of appeal is to the High Court in England and Wales or to the Court of Session in Scotland. If you receive an appeal against a penalty determined by the Commissioners contact Central Policy: Tax Administration Policy, for advice.