ECH21138 - Penalties: Raising Formal Penalty Determinations - Daily Penalties and Penalties for Failure to Submit a Return (First 12 months of Lateness)

explains the initial action to be taken on all cases when raising formal penalty determinations.

Wherever possible penalties for failure to submit a return should be either included in a contract settlement or issued by the appropriate IT System (ECS or CIS).

When proceeding to raise formal penalty determinations for

• daily penalties following the determination of an initial penalty by Commissioners or
• for failing to submit a return (First 12 months of lateness)

you will

• complete a Penalty Authorisation Request – Daily stencil, or
• a Penalty Authorisation Request – first 12 months of lateness stencil
• complete a 394 and
• refer the case to the local Grade 6 officer via the senior manager.

The local Grade 6 will

• consider the information provided
• determine the penalty (if appropriate)
• sign the 394 and
• refer the papers back to you.

You will then

• prepare a penalty notice letter
• complete a SAFE referral stencil and
• send the stencil with the penalty notice letter and 394 to the SAFE officer.

The SAFE officer will

• create a charge on SAFE and
• return the documents to you along with a payslip.

You will then

• issue the 394, letter, payslip and an appeals note to the employer/contractor and
• BF the case for 30 days

If the employer/contractor appeals against any penalty determinations you should follow the guidance at ECH21260.