ECH21139 - Penalties: Raising Formal Penalty Determinations - Penalties of a Maximum Set Amount or Maximum of a Difference between Amounts

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 included in a contract settlement.

When proceeding to raise formal penalty determinations for a penalty that is a maximum of either a set amount or a maximum of the difference between amounts the penalty must be authorised by the Authorising Officer but the penalty itself is determined by a local Grade 6.

Once an appropriate amount of penalty has been calculated you will

• complete a Penalty Authorisation Request stencil
• complete a 394 and
• refer the case to the Authorising Officer via the Senior Manager.

The Authorising Officer will

• consider the information provided
• authorise the penalty (if appropriate) and
• return the papers.

You will then

• pass the papers to the local Grade 6 if they were not sent direct by the Authorising Officer.

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

• 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/subcontractor and
• BF the case for 30 days

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