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


ECH21136 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)

the caseworker will

  • complete a Penalty Authorisation Request – Daily 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 the caseworker.

The caseworker will then

The SAFE officer will

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

The caseworker 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 the caseworker should follow the guidance at ECH21260.