CH270100 - How to do a compliance check: Penalties for failure to comply with Information and Inspection notices: Initial penalty

To find out when you can assess a Schedule 36 penalty see CH26200+.

The first penalty you will assess is an initial penalty of £300. This penalty must be agreed in writing by your line manager, unless the offence is that of deliberately obstructing a tribunal-approved inspection in which case you must seek the agreement of an authorised officer. A template, CHApp2.7 (Internal Template IT07 in SEES Forms and Letters) is available for you to get your manager's agreement, or the agreement of an authorised officer.

There will not be a penalty if there is a reasonable excuse for the failure or obstruction, see CH26300.

Once you get agreement to assess a penalty you should write to the person who has failed to comply with an information notice warning them that you will assess a penalty of £300 if they do not comply with your notice within 14 days from the date of your letter.

However, a person who

• deliberately obstructs a tribunal-approved inspection
• deliberately destroys records that are required by a notice, see CH26260

will have already been warned in the notice you issued that their actions render them liable for penalties. No further warnings are required.

You should send a copy of the information notice with your warning letter, marking the copy notice to show what you still need the person to provide and/or produce in order to comply. A warning letter template (IIP24) is available in SEES Forms and Letters.

If information notices are to be effective, it is important that you follow these up promptly at all stages.

If you have received no response to your warning letter after say 21 days, you should assess a penalty of £300.

CH26860 explains the time limits within which you must issue a penalty assessment.

The penalty charge will be created using the Strategic Accounting Framework Environment (SAFE), see CH270500 for details of how to create a charge.

When you assess the penalty you should send the person

• a notice of assessment (with a copy to the agent if there is one)
• a payslip (generated through Print Payslip using the SAFE charge reference. If you do not have access to a stand-alone printer use manual payslip PS1(NUS) and enter the SAFE charge reference).

You should send a copy of the information notice with your penalty notice, marking the copy to show what you still need the person to provide and/or produce in order to comply.

The following penalty notice templates are available in SEES Forms and Letters

• IIP13 Information notice initial -penalty
• IIP16 Announced inspection initial -penalty
• IIP17 Unannounced inspection initial penalty
• A penalty notice must be signed by someone at grade HO or above.