CH74200 - Penalties for Failure to Notify: How to process a penalty: When you must tell the person of the penalty
Normally you should issue the penalty assessment to the person when the failure that gave rise to the penalty is put right. But that is not essential.
A penalty assessment may be made up to 12 months after
- the end of the period during which the person can appeal against our assessment of the tax unpaid because of the failure, or
- when the person has appealed against the assessment, the time when the appeal is finally decided or the person withdraws it, or
- where there is no such assessment, the date on which the amount of tax unpaid because of the failure is ascertained.
A contract settlement following a compliance check is equivalent to raising a penalty assessment. EM6000 onwards gives guidance on contract settlements.
