CCM8640 - Closing the Examination: Formal Proceedings

HMRC’s preferred method of settlement in a case involving a penalty is a letter of offer. You must therefore always follow the guidance at CCM8240 onwards but sometimes despite your best efforts it will not be possible to obtain a letter of offer and you will have reached the stage described at CCM8540.

Where a claimant will not make an offer, we will consider issuing a formal penalty determination. Such a determination can only be made with the approval of the Claimant Compliance Deputy Director Business Improvement and Development. If you and your manager believe a penalty should be imposed, you must submit your papers to the Claimant Compliance Deputy Director Business Improvement and Development but you must ensure you have reached the stage described at CCM8550.

Your submission must be in the layout described at CCM8620 but item (g) will need to reflect the offer which you consider is appropriate, and item (i) will be a recommendation that a formal penalty determination is issued. Your submission must be passed to your Claimant Compliance Centre Manager (CCCM) who will need to ensure that everything is in order. The papers must then be passed to your Claimant Compliance Group Manager (CCGM) who, if he/she is content, will forward the papers to the Reviewing Officer - Formal Penalty submissions.