ECH21139 - Penalties: Raising Formal Penalty Determinations - Penalties of a Maximum Set Amount or Maximum of a Difference between Amounts
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 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 the
caseworker 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.
The caseworker 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 the caseworker.
The caseworker 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 the caseworker along with a payslip.
The caseworker 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 the caseworker should follow the guidance at ECH21260.
