CH83020 – How to Process the Penalty: Raising a Penalty Assessment: Penalty assessments

This guidance applies to returns and documents with a filing date on or after 1 April 2009 where the return covers a tax period beginning on or after 1 April 2008 seeCH81011for full details.

Once a person has become liable to a penalty for an inaccuracy or under-assessment we will send them a penalty notice assessment.

This will tell the person what they owe and when they must pay it. The penalty assessment is enforceable in the same way as an assessment to tax.

Before you issue the penalty assessment you must decide

• the amount of the penalty see CH82510
• which tax periods the penalty relates to, see CH81030.

If you intend to include the penalty in a contract settlement you will still need to tell the person how much the penalty is but the contract will stand in place of the assessment. You will find guidance on contract settlements at EM6000.