HMRC has power to suspend either:
- Ìý
•ÌýÌýÌýÌý a penalty for inaccuracy in a document (see A4.530), or
- Ìý
•ÌýÌýÌýÌý a late payment penalty (see A4.560)
The mechanics of suspension operate differently for each of these penalties as below. There is no provision for suspension of penalties relating to failure to notify liability or late filing.
Inaccuracy in documents
HMRC has power to suspend, for up to two years, all or part of a penalty for careless inaccuracy, ie where there has been a failure to take reasonable care1. There is no provision for suspension where the inaccuracy was brought about deliberately. A suspended penalty can subsequently be cancelled or become payable.
The suspension must be subject to one or more conditions designed to help the taxpayer avoid becoming liable for further penalties for careless inaccuracies2.
To effect the suspension HMRC must serve a notice on the taxpayer giving all the following details3:
- Ìý
•ÌýÌýÌýÌý what part of the penalty is suspended
- Ìý
•ÌýÌýÌýÌý the suspension period
- Ìý
•
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Web page updated on 17 Mar 2025 17:16