Penalty factsheets for VAT, excise and other taxes: CC/FS12, CC/FS18c, CC/FS20

HMRC's factsheet CC/FS12 says it tells you about the penalties HMRC may charge for a VAT, Excise or Landfill Tax wrongdoing.

“This factsheet tells you about the penalties we may charge you for a VAT, Excise or Landfill Tax wrongdoing.”

HMRC's factsheet CC/FS12 says HMRC may charge a penalty if you commit a wrongdoing and it results in VAT, Excise Duty or Landfill Tax being due.

“We may charge you a penalty if you commit a wrongdoing and it results in VAT, Excise Duty or Landfill Tax being due.”

HMRC's factsheet CC/FS12 says it will not charge a penalty for a VAT or Excise wrongdoing if you have a reasonable excuse, the wrongdoing was not deliberate, and you told HMRC without unreasonable delay after your reasonable excuse ended.

“We won’t charge you a penalty for a VAT or Excise wrongdoing if all of the following apply: … you have a reasonable excuse for the wrongdoing … the wrongdoing was not deliberate … you notified us without unreasonable delay after your reasonable excuse ended”

HMRC's factsheet CC/FS12 says the penalty is a percentage of the "potential lost revenue" (PLR), which is the amount that arises as a result of the wrongdoing.

“The penalty is a percentage of what we call the ‘potential lost revenue’. PLR is the amount that arises as a result of the wrongdoing.”

HMRC's factsheet CC/FS12 says a deliberate wrongdoing is one where you knew you had committed it but did not attempt to conceal it, and a deliberate and concealed one is where you knew and took active steps to hide it from HMRC.

“this is where you knew that you had committed a wrongdoing but did not attempt to conceal it … Deliberate and concealed … this is where you knew that you had committed a wrongdoing and you took active steps to hide it from us”

HMRC's factsheet CC/FS12 sets out penalty ranges by behaviour: non-deliberate 10% to 30% if unprompted and 20% to 30% if prompted (not for Landfill Tax), deliberate 20% to 70% and 35% to 70%, and deliberate and concealed 30% to 100% and 50% to 100%.

“Type of behaviour | Unprompted disclosure | Prompted disclosure … Non-deliberate (this does not apply to Landfill Tax wrongdoings) | 10% to 30% | 20% to 30% … Deliberate | 20% to 70% | 35% to 70% … Deliberate and concealed | 30% to 100% | 50% to 100%”

HMRC's factsheet CC/FS12 says there is a separate penalty range for supplying a product knowing that it will be misused, of 30% to 100% for an unprompted disclosure and 50% to 100% for a prompted one, and that it does not apply to other wrongdoings.

“There is also a separate penalty range for supplying a product knowing that it will be misused. This does not apply to other wrongdoings. … Unprompted disclosure | Prompted disclosure … Deliberate | 30% to 100% | 50% to 100%”

HMRC's factsheet CC/FS12 says the reduction for the quality of disclosure depends on how much assistance you give, and lists three kinds of assistance for which HMRC gives up to 30%, up to 40% and up to 30%.

“The reduction we give depends on how much assistance you give us for … we give up to 30% … we give up to 40% … we give up to 30%”

HMRC's factsheet CC/FS12 says that if it has taken you a long time, such as 3 years or more, to correct or disclose what is wrong, HMRC will usually restrict the maximum reduction to 10 percentage points above the minimum of the penalty range.

“If it’s taken you a long time, (such as 3 years or more), to correct or disclose what is wrong, we’ll usually restrict the maximum reduction we give for the quality of disclosure to 10 percentage points above the minimum of the penalty range.”

HMRC's factsheet CC/FS12 gives an example in which the range for a non-deliberate wrongdoing with a prompted disclosure is 20% to 30% of the PLR, and a PLR of £3,000 with no other reductions gives a penalty of £690 at 23%.

“The penalty range for a non-deliberate wrongdoing with a prompted disclosure is 20% to 30% of the PLR. … if the PLR in the example above was £3,000 and there were no other reductions, the penalty would be £690 (£3,000 × 23% = £690).”

HMRC's factsheet CC/FS12 says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have the case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear the appeal.

“You’ll usually have 3 options. Within 30 days, you can: … send new information to the officer dealing with the check and ask them to take it into account … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's factsheet CC/FS12 says that if health or personal circumstances make it difficult to deal with HMRC, you can tell the officer who contacted you, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who has contacted you. … You can also ask someone else to deal with us on your behalf, for example, a professional adviser, friend or relative.”

HMRC's factsheet CC/FS18c says it tells you about the penalty percentage HMRC may charge if your return is more than 12 months late.

“This factsheet tells you about the penalty percentage that we may charge if your return is more than 12 months late.”

HMRC's factsheet CC/FS18c says its penalty percentages and rules apply to returns starting on or after set dates: 1 February 2013 for Machine Games Duty, 6 April 2018 for Soft Drinks Industry Levy and 1 April 2022 for Plastic Packaging Tax.

“The penalty percentages and penalty rules apply to the following returns starting on or after … 1 February 2013 for Machine Games Duty (MGD) … 6 April 2018 for Soft Drinks Industry Levy (SDIL) … 1 April 2022 for Plastic Packaging Tax (PPT)”

HMRC's factsheet CC/FS18c says it does not apply to VAT, and points to GOV.UK for details about the VAT default surcharge.

“This factsheet does not apply to VAT. For details about the VAT default surcharge, go to GOV.UK and search ‘apply default surcharge’.”

HMRC's factsheet CC/FS18c says HMRC will not charge penalties for failing to file a return on time if it agrees you had a reasonable excuse, provided you filed the return without delay once the excuse had ended.

“We will not charge you any penalties for failing to file your return on time if we agree that you had a reasonable excuse. This is provided you filed your return without delay once the reasonable excuse had ended.”

HMRC's factsheet CC/FS18c says that if you did not file on time HMRC may already have charged an initial penalty of between £100 and £400, and a further penalty of £300 or 5% of the liability in the return, whichever was higher, once the return was 6 months late.

“If you did not file your return on time, we may have already charged you the following penalties … An ‘initial penalty’ of between £100 and £400 on the day after the date your return was due … A ‘further penalty’ of £300 or 5% of the liability in the return (whichever was the higher), after your return was 6 months late.”

HMRC's factsheet CC/FS18c says HMRC will charge a second further penalty of £300 or 5% of the liability in the return, whichever is higher, once the return is 12 months late, unless you withheld information and knew it would help HMRC work out the correct liability, in which case a penalty of up to 100% of your liability can be charged.

“We will charge you a second ‘further penalty’ of £300 or 5% of the liability in the return (whichever is the higher), after your return is 12 months late. … withheld information … knew that the information would help us to work out the correct liability … In these cases, we can charge a penalty of up to 100% of your liability.”

HMRC's factsheet CC/FS18c says that where you did not know information was being withheld by filing late, the penalty is a fixed 5% of your liability or £300, whichever is higher.

“This is where you did not know that, by failing to file the return on time, information was being withheld from us that would help us to work out the correct liability. … This is because the penalty is a fixed 5% of your liability or £300, whichever is higher.”

HMRC's factsheet CC/FS18c sets out the increased penalty ranges: deliberate behaviour 20% to 70% for an unprompted disclosure and 35% to 70% for a prompted one, and deliberate and concealed behaviour 30% to 100% and 50% to 100%.

“Type of behaviour | Unprompted disclosure | Prompted disclosure … Deliberate | 20% to 70% | 35% to 70% … Deliberate and concealed | 30% to 100% | 50% to 100%”

HMRC's factsheet CC/FS18c says the reduction for the quality of disclosure depends on how much assistance you give, and lists three kinds of assistance for which HMRC gives up to 30%, up to 40% and up to 30%.

“The reduction we give depends on how much assistance you give us … we give up to 30% … we give up to 40% … we give up to 30%”

HMRC's factsheet CC/FS18c says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have your case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear your appeal.

“You will usually have 3 options. Within 30 days, you can: … send new information to the officer you’ve been dealing with and ask them to take it into account … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's factsheet CC/FS18c says that whichever appeal route you choose, you may also be able to ask for an HMRC specialist officer to act as a neutral facilitator, known as Alternative Dispute Resolution (ADR), which is only available for disputes relating to specific tax areas.

“you may also be able to ask for an HMRC specialist officer to act as a neutral facilitator to help resolve the dispute. We call this Alternative Dispute Resolution (ADR). … ADR is only available for disputes that relate to specific tax areas.”

HMRC's factsheet CC/FS18c says that if health or personal circumstances make it difficult to deal with HMRC, you can tell the officer who contacted you and HMRC will help in whatever way it can.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who contacted you. We’ll help you in whatever way we can.”

HMRC's factsheet CC/FS20 says it contains information about VAT dishonest conduct penalties.

“This factsheet contains information about VAT dishonest conduct penalties.”

HMRC's factsheet CC/FS20 says HMRC gives it to you because it has found out about a VAT irregularity to which dishonest conduct penalties may apply, and it now needs to establish whether there was dishonest conduct.

“We have given you this factsheet because we have found out about a VAT irregularity to which VAT dishonest conduct penalties may apply. We now need to establish whether there was dishonest conduct.”

HMRC's factsheet CC/FS20 says the penalties apply to any VAT irregularity involving dishonest conduct for periods before the introduction of the new penalties, and to the evasion of VAT by failure to submit a VAT return.

“any VAT irregularity involving dishonest conduct for periods before the introduction of the ‘new’ penalties … the evasion of VAT by failure to submit a VAT return”

HMRC's factsheet CC/FS20 says dishonesty is where a person does something, or fails to do something, that would be regarded as dishonest according to the ordinary standards of reasonable and honest people.

“Dishonesty is where a person does something or fails to do something that would be regarded as dishonest according to the ordinary standards of reasonable and honest people.”

HMRC's factsheet CC/FS20 says the new penalties include one for failure to notify an under-assessment of VAT for returns due from 1 April 2009, and that where there is dishonest conduct both kinds of penalty may apply but HMRC will never charge both together.

“failure to notify an under-assessment of VAT for returns due from 1 April 2009 … where there is dishonest conduct, VAT dishonest conduct penalties may also apply, but we will never charge both penalties together”

HMRC's factsheet CC/FS20 says the penalty is a percentage of the difference between VAT under-declared or over-claimed and the correct amount, or of the VAT declared late because of a failure to submit the return.

“The penalty will be a percentage of one of the following … the difference between any VAT that you have under-declared or over-claimed (or tried to under-declare or over-claim) and the correct amount of VAT … the VAT that you declared late because of your failure to submit your return”

HMRC's factsheet CC/FS20 says that in working out the penalty HMRC starts with the maximum possible penalty, which can be 100% of the VAT, and then considers whether to reduce it.

“When working out the penalty we start with the maximum possible penalty, which can be 100% of the VAT. We then consider whether to reduce the penalty.”

HMRC's factsheet CC/FS20 says HMRC can normally reduce the penalty by up to 40% for an early and full disclosure, but gives very little or no reduction if you do not say anything is wrong until near the end of the check.

“We can normally reduce the penalty by up to 40% for an early and full disclosure. … If you do not tell us that anything is wrong until near the end of the check, we will give you very little or no reduction for disclosure.”

HMRC's factsheet CC/FS20 says HMRC can reduce the penalty by up to 40% for good co-operation, such as letting it have information quickly and answering questions fully, but gives little or no reduction if you delay, mislead or obstruct the check.

“We can reduce the penalty by up to 40% for good co-operation. … letting us have the information we need quickly … answering our questions as fully and correctly as possible … If you delay giving us the information we need or give us misleading answers and generally obstruct our check, we will give you little or no reduction for co-operation.”

HMRC's factsheet CC/FS20 says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have your case reviewed by an HMRC officer not involved in it, or have an independent tribunal hear your appeal.

“You will usually have 3 options. Within 30 days you can: … send new information to the officer you have been dealing with and ask them to take it into account … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for your appeal to be heard by an independent tribunal, who will decide the matter”

HMRC's factsheet CC/FS20 says that if health or personal circumstances make it difficult to deal with the matter, you can tell the officer who contacted you and HMRC will help in whatever way it can.

“If you have any health or personal circumstances that may make it difficult for you to deal with this matter, please tell the officer that’s contacted you. We’ll help you in whatever way we can.”

HMRC's factsheet CC/FS20 says that whichever appeal route you choose, you may also be able to ask for an HMRC specialist officer to act as a neutral facilitator, known as Alternative Dispute Resolution (ADR), and that the officer dealing with your check will tell you if ADR is available.

“you may also be able to ask for an HMRC specialist officer to act as a neutral facilitator to help resolve the dispute. This process is known as ‘Alternative Dispute Resolution’ (ADR). … The officer dealing with your check will tell you if ADR is available for the matter that you are disputing.”

HMRC's factsheet CC/FS31 says it contains information about the penalties HMRC may charge where there has been a contravention of the Alcohol Wholesaler Registration Scheme (AWRS).

“This factsheet contains information about the penalties HM Revenue and Customs (HMRC) may charge where there’s been a contravention of the Alcohol Wholesaler Registration Scheme (AWRS).”

HMRC's factsheet CC/FS31 says it does not cover fixed civil penalties for failure to comply with regulatory requirements.

“It does not cover fixed civil penalties for failure to comply with regulatory requirements.”

HMRC's factsheet CC/FS31 says HMRC may have given it to you because it has opened a compliance check to check that you have complied with the requirements of the AWRS.

“We may have given you this factsheet because we’ve opened a compliance check to check that you have complied with the requirements of the AWRS.”

HMRC's factsheet CC/FS31 says HMRC can charge a penalty for failures to comply with the AWRS, called contraventions, which are carrying on a controlled activity without AWRS approval and buying controlled liquor from a wholesaler who should have approval.

“We can charge you a penalty if you do not comply with the requirements of the AWRS. These failures to comply are called contraventions. … carrying on a controlled activity without an AWRS approval from us … buying controlled liquor from a wholesaler who should have an AWRS approval”

HMRC's factsheet CC/FS31 says it will not charge a penalty for a non-deliberate AWRS contravention if you have a reasonable excuse and you complied in full with the AWRS without unreasonable delay after the excuse ended.

“We will not charge you a penalty for a non-deliberate AWRS contravention if you have a reasonable excuse for the contravention and you complied in full with the requirements of the AWRS without unreasonable delay after the reasonable excuse ended.”

HMRC's factsheet CC/FS31 says the maximum penalty for each AWRS contravention is £10,000, and that the amount charged depends on the behaviour, whether the disclosure was prompted or unprompted, and the quality of the disclosure.

“The maximum penalty for each AWRS contravention is £10,000. The amount of each penalty we charge depends on the behaviour, which is explained below, whether your disclosure was prompted or unprompted, and the quality of your disclosure.”

HMRC's factsheet CC/FS31 says 'deliberate but not concealed' means you knew you had contravened the AWRS, and 'deliberate and concealed' means you knew and also took active steps to hide the contravention from HMRC.

“Deliberate but not concealed … This is where you knew that you had contravened the AWRS. … Deliberate and concealed … This is where you knew that you had contravened the AWRS and you also took active steps to hide the contravention from us.”

HMRC's factsheet CC/FS31 sets out penalty ranges: deliberate and concealed 30% to 100% if unprompted and 50% to 100% if prompted, deliberate 20% to 70% and 35% to 70%, and non-deliberate 10% to 30% and 20% to 30%.

“Type of behaviour | Penalty range for unprompted disclosure | Penalty range for prompted disclosure … Deliberate and concealed | 30% to 100% | 50% to 100% … Deliberate | 20% to 70% | 35% to 70% … Non-deliberate | 10% to 30% | 20% to 30%”

HMRC's factsheet CC/FS31 says the reduction for the quality of disclosure depends on how much assistance you give, and lists three kinds of assistance for which HMRC gives up to 30%, up to 40% and up to 30%.

“The reduction we give depends on how much assistance you give us … we give up to 30% … we give up to 40% … we give up to 30%”

HMRC's factsheet CC/FS31 says that when it is considering penalties you have the right under Article 6 not to answer its questions, and that this right does not cover information or documents that already exist.

“When considering penalties, you have the right under Article 6 not to answer our questions. … This right does not cover information or documents that already exist.”

HMRC's factsheet CC/FS31 says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have your case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear your appeal.

“You’ll usually have 3 options. Within 30 days, you can: … send new information to the officer you’ve been dealing with the check and ask them to take it into account … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's factsheet CC/FS31 says that if health or personal circumstances make it difficult to deal with the check, you can tell the officer who contacted you, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with this check, please tell the officer that’s contacted you. We’ll help you in whatever way we can. … You can also ask someone else to deal with us on your behalf, for example, a professional adviser, friend or relative.”

HMRC's factsheet CC/FS41 says it contains information about the penalty or penalties HMRC will charge if you supplied false information or provided false documents to become registered for the Construction Industry Scheme (CIS).

“This factsheet contains information about the penalty or penalties we’ll charge if you’ve done either … of the following to become registered for the Construction Industry Scheme (CIS): … supplied false information … provided false documents”

HMRC's factsheet CC/FS41 says HMRC will cancel your registration if you supplied false information or a false document, or did not respond to requests for evidence, and that it will also consider a penalty for false registration.

“We’ll cancel your registration if you’ve done or influenced another person to have done any of the following … supplied information knowing it to be false … supplied any document which is false … do not respond to requests for documentary evidence to support your application … We’ll also consider a penalty for false registration.”

HMRC's factsheet CC/FS41 says it will charge a penalty of £3,000 if you give, or influence another person to give, information or documents about identity, business or turnover recklessly, or that you know to be false and then give further false information or documents or do not co-operate to identify the false details.

“We’ll charge a penalty of £3,000 if you give us, or influence another person to give information or documents about your or their identity, business or turnover … recklessly … that you know to be false, and then do either of the following … give us further false information or documents … do not co-operate with us to identify the false details”

HMRC's factsheet CC/FS41 says it will charge a penalty of £2,000 if you are unable to provide satisfactory documents, or you confirm that your original registration provided false information or documents about your identity and business or your business and turnover.

“However, we’ll charge a penalty of £2,000 if either of the following apply … you are unable to provide satisfactory documents … you confirm that your original registration provided false information or documents about either … your identity and business … your business and turnover”

HMRC's factsheet CC/FS41 says it will charge a penalty of £1,000 if the false information or documents are about your or another person's identity, the business or the turnover.

“We’ll charge a penalty of £1,000 if the false information or documents are about any of the following … your or another person’s identity … the business … the turnover”

HMRC's factsheet CC/FS41 says that when it charges a penalty it will send a calculation of the amount it believes is due and try to agree it with you, then send a penalty assessment notice or ask you to enter into a contract to pay the penalty.

“We’ll send you a calculation of the amount we believe is due. We’ll try to agree this amount with you. We’ll send a penalty assessment notice, or we may ask you to enter into a contract with us to pay the penalty.”

HMRC's factsheet CC/FS41 says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have your case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear your appeal.

“You’ll usually have 3 options. Within 30 days, you can: … send new information to the officer dealing with the check and ask them to take it into account … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's factsheet CC/FS41 says HMRC may carry out a criminal investigation with a view to prosecution if you have deliberately done something wrong, such as giving information you know is not true.

“We may carry out a criminal investigation with a view to prosecution if you’ve deliberately done something wrong, such as: … given us information that you know is not true, whether verbally or in a document”

HMRC's factsheet CC/FS41 says that whichever appeal route you choose, you may also be able to ask for an HMRC specialist officer to act as a neutral facilitator, known as Alternative Dispute Resolution (ADR), which is only available for disputes relating to particular tax areas.

“you may also be able to ask for an HMRC specialist officer to act as a neutral facilitator to help resolve the dispute. We call this Alternative Dispute Resolution (ADR). … ADR is only available for disputes that relate to particular tax areas.”

HMRC's factsheet CC/FS41 says that if health or personal circumstances make it difficult to deal with the matter, you can tell the officer who contacted you, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with this matter, please tell the officer that’s contacted you. We’ll help you in whatever way we can. … You can also ask someone else to deal with us on your behalf, for example, a professional adviser, friend or relative.”

HMRC's factsheet CC/FS42 says it tells you about the penalties HMRC may charge if you knew or should have known that you participated in one or more transactions connected with a VAT fraud by a defaulting trader.

“This factsheet tells you about the penalties we may charge if you knew or should have known that you participated in one or more transactions connected with a VAT fraud by a defaulting trader.”

HMRC's factsheet CC/FS42 says HMRC may charge a penalty when you meet all 3 conditions: you participated in transactions connected with VAT fraud, you knew or should have known this, and HMRC has told you that you cannot rely on a VAT right because the knowledge principle applies.

“We may charge you a penalty when you meet all of the following 3 conditions: … you’ve participated in one or more transactions that were connected with VAT fraud … you knew or should have known that these transactions were connected with VAT fraud … we’ve told you that you’re not entitled to rely on a ‘VAT right’ because ‘knowledge principle’ applies”

HMRC's factsheet CC/FS42 says these penalties only apply to VAT and to transactions which took place after 16 November 2017, and that for earlier transactions HMRC may consider an inaccuracy penalty.

“These penalties only apply to transactions which have taken place after 16 November 2017. For transactions occurring before this date, HMRC may consider an inaccuracy penalty under Schedule 24 of the Finance Act 2007.”

HMRC's factsheet CC/FS42 says that as a result of a decision under the knowledge principle, HMRC may deny you the deduction of input tax or another VAT right, assess any VAT that may be due, or both.

“As a result of any decision we make under the knowledge principle, we may do either or both of the following: … deny you the deduction of input tax or another VAT right … assess any VAT that may be due”

HMRC's factsheet CC/FS42 says it will not charge a penalty if you have already been charged a penalty for an inaccuracy involving the same transactions, or have been convicted of a criminal offence involving the same transactions.

“We will not charge you a penalty if either you have: … already been charged a penalty for an inaccuracy involving the same transactions under Schedule 24 of the Finance Act 2007 … been convicted of a criminal offence involving the same transactions”

HMRC's factsheet CC/FS42 says the penalty is the amount of VAT denied or assessed multiplied by a fixed rate of 30%, and gives an example in which £1,000 of denied input tax gives a penalty of £300.

“we multiply the amount of VAT denied or assessed under the knowledge principle by the penalty percentage rate of 30%. The penalty rate for this type of penalty is fixed at 30%. … if we deny £1,000 input tax under the knowledge principle based on the ‘Kittel’ judgement, then the penalty would be £300.”

HMRC's factsheet CC/FS42 says HMRC may reduce the penalty when there are mitigating circumstances, but not if over 50% of the value of the transactions in any VAT period under consideration are artificially contrived or connected with fraud and you knew or should have known.

“We may reduce the penalty when there are mitigating circumstances. … You are not entitled to any reductions if over 50% of the value of the transactions in any of the VAT periods under consideration are artificially contrived or connected with fraud and you knew or should have known about this.”

HMRC's factsheet CC/FS42 says a company officer may be liable to pay some or all of the company's penalty when the company is liable because it knew or should have known its transactions were connected with VAT fraud and its actions were attributable to the officer.

“A company officer may be liable to pay some or all of the company’s penalty when the: … company which they were acting for at the time of the transactions is liable to a penalty because it knew or should have known that its transactions were connected with VAT fraud … actions of the company, which give rise to that penalty, were attributable to the company officer”

HMRC's factsheet CC/FS42 says HMRC can publish the names of businesses where the VAT denied or assessed exceeds £50,000 and of company officers where their share of the penalty exceeds £25,000, and that there is no right of appeal against having details published.

“the names of businesses that knew or should have known that their transactions were connected with VAT fraud, where the amount of VAT denied or assessed, upon which the penalty or penalties are chargeable exceeds £50,000 … the name of company officers where the amount of the penalty that’s attributable to them exceeds £25,000 … There is no right of appeal against having your details published.”

HMRC's factsheet CC/FS42 says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have your case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear your appeal.

“You’ll usually have 3 options. Within 30 days, you can: … send new information to the officer dealing with the check and ask them to take it into account … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's factsheet CC/FS42 says that whichever appeal route you choose, you may also be able to ask for an HMRC specialist officer to act as a neutral facilitator, known as Alternative Dispute Resolution (ADR), which is only available for disputes relating to particular tax areas.

“you may also be able to ask for an HMRC specialist officer to act as a neutral facilitator to help resolve the dispute. We call this Alternative Dispute Resolution (ADR). … ADR is only available for disputes that relate to particular tax areas.”

HMRC's factsheet CC/FS42 says that if health or personal circumstances make it difficult to deal with the matter, you can tell the officer who contacted you, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with this matter, please tell the officer that’s contacted you. We’ll help you in whatever way we can. … You can also ask someone else to deal with us on your behalf, for example, a professional adviser, friend or relative.”

HMRC's factsheet CC/FS46 says it gives information about the penalties HMRC may charge a financial institution for failing to comply with its Automatic Exchange of Information obligations under the International Tax Compliance Regulations 2015.

“This factsheet gives you information about the penalties we may charge a financial institution for failure to comply with its Automatic Exchange of Information obligations under the International Tax Compliance Regulations 2015 (the Regulations) as amended.”

HMRC's factsheet CC/FS46 says the regulations impose a number of obligations on financial institutions, including reporting, due diligence and notification obligations.

“The regulations impose a number of obligations on the financial institutions. Such obligations include, but are not limited to, reporting, due diligence, and notification obligations.”

HMRC's factsheet CC/FS46 says a penalty may be charged for each compliance failure made by a financial institution, so there can be multiple failures subject to a penalty in a reporting period.

“A penalty may be charged for each compliance failure made by a financial institution. There can therefore be multiple failures subject to a penalty in a reporting period.”

HMRC's factsheet CC/FS46 says a compliance failure penalty of £300 may be charged if a financial institution fails to comply with any obligation under regulations 2 to 11 or regulation 12G, and that this is distinct from the penalty for inaccurate information.

“A compliance failure penalty of £300 may be charged if a financial institution fails to comply with any obligation under regulations 2 to 11 or regulation 12G of the Regulations. This is a distinct penalty to the penalty for providing inaccurate information outlined below.”

HMRC's factsheet CC/FS46 lists examples of failures that may be penalised, such as failing to file complete returns on time or failing to provide information within 14 days of a written notice, and says the examples are not exhaustive.

“The examples are not an exhaustive list: … failure to file complete returns on time … failure to provide an officer of Revenue and Customs with information in respect of your obligations under the Regulations as specified within 14 days following a written notice”

HMRC's factsheet CC/FS46 says that if the obligation is still not met once the £300 penalty has been issued, HMRC may charge daily penalties of up to £60 a day, and after 30 days it may apply to the tribunal to increase the daily penalty to £1,000.

“by the time we’ve issued the £300 penalty, we may then charge you daily penalties of up to £60 a day … If after 30 days the financial institution has not complied with the obligation, an officer of HMRC may make an application to the tribunal for an increased daily penalty … The tribunal may increase the daily penalty to £1,000 for each applicable day.”

HMRC's factsheet CC/FS46 says an inaccuracy penalty of up to £3,000 may be charged if, in complying with its reporting obligation at regulation 6, a financial institution provides inaccurate information and condition A, B or C is met.

“An inaccuracy penalty of up to £3,000 may be charged if: … in complying with their reporting obligation at regulation 6 of the Regulations, a financial institution provides inaccurate information … condition A, B or C is met”

HMRC's factsheet CC/FS46 describes the conditions: A is an inaccuracy due to failing the due diligence requirements or deliberate, B is knowing of the inaccuracy when the information is provided without telling HMRC, and C is discovering it later and not taking reasonable steps to inform HMRC.

“Condition A is that the inaccuracy is due to a failure to comply with the due diligence requirements or deliberate on the part of the person. … the financial institution knows of the inaccuracy at the time the information is provided but does not inform HMRC at that time … discovers the inaccuracy some time later and fails to take reasonable steps to inform HMRC”

HMRC's factsheet CC/FS46 says the maximum inaccuracy penalty for each inaccuracy is £3,000, and lists factors HMRC takes into account, including whether the inaccuracy was disclosed, the level of cooperation and the behaviour that led to it.

“The maximum inaccuracy penalty for each inaccuracy is £3,000. … whether the financial institution disclosed the inaccuracy to HMRC … the level of cooperation in identifying the inaccuracy … the behaviour which led to the inaccuracy”

HMRC's factsheet CC/FS46 says that if HMRC charges a compliance failure penalty or an inaccuracy penalty you may appeal in writing to HMRC within 30 days from the date the notification of a penalty is given, and that the appeal must state the grounds of appeal.

“If we charge a compliance failure penalty or an inaccuracy penalty you may appeal in writing to HMRC within 30 days from the date the notification of a penalty is given. Your appeal must state the grounds of appeal.”

HMRC's factsheet CC/FS46 says that if HMRC asks questions to help decide whether to charge a penalty you have the right not to answer them, and that the amount of help you give is entirely a matter for you to decide.

“if we ask you any questions to help us decide whether to charge you a penalty, you have the right not to answer them … the amount of help that you give us when we’re considering penalties is entirely a matter for you to decide”

HMRC's factsheet CC/FS46 says that if you give information you know to be untrue, whether verbally or in a document, or dishonestly declare the wrong amount of duty or claim payments you are not entitled to, HMRC may carry out a criminal investigation and you may be prosecuted.

“give us information that you know to be untrue, whether verbally or in a document … dishonestly declare the wrong amount of duty or claim payments to which you are not entitled … We may carry out a criminal investigation and you may be prosecuted.”

HMRC's factsheet CC/FS59 says it is about penalties HMRC may charge in relation to country-by-country reporting.

“This factsheet is about penalties we may charge in relation to country-by-country reporting.”

HMRC's factsheet CC/FS59 says HMRC may charge a penalty if you do not meet obligations such as filing a country-by-country report by the filing deadline or notifying HMRC about country-by-country reporting by the deadline date.

“HMRC may charge a penalty if you do not meet one or more of the obligations to: … file a country-by-country report by the filing deadline … notify us about country-by-country reporting by the deadline date”

HMRC's factsheet CC/FS59 says HMRC may charge a penalty for inaccurate information if you send an inaccurate country-by-country report or inaccurate additional information it asks for to check the report is correct.

“We may charge you a penalty for inaccurate information if you send us either: … an inaccurate country-by-country report … inaccurate additional information that we ask for to check the report is correct”

HMRC's factsheet CC/FS59 says it charges a £300 penalty for not meeting an obligation, and that if the obligation is still not met when you are notified of the £300 penalty it may then charge daily penalties of £60 for each day.

“We charge a £300 penalty for not meeting an obligation. … If you’ve still not met an obligation by the time we have notified you of the £300 penalty, we may then charge daily penalties of £60. We will charge the penalty for each day that you do not meet that obligation.”

HMRC's factsheet CC/FS59 says that for inaccuracies in a country-by-country report, or in additional information it has asked for, it may charge a penalty of up to £3,000 for each report that an inaccuracy relates to.

“For inaccuracies in a country-by-country report, or in additional information we have asked for, we may charge a penalty up to £3,000 for each report that an inaccuracy relates to.”

HMRC's factsheet CC/FS59 lists things it considers when assessing the amount of a penalty, including the number of error types, whether there is a material error and whether the company disclosed the error to HMRC, and says this is not a full list.

“When assessing the amount of a penalty, we consider: … the number of error types … whether there is a material error … whether the company disclosed the error to HMRC … This is not a full list.”

HMRC's factsheet CC/FS59 says it may not charge a penalty for an inaccuracy if you took reasonable care to get things right but the report was still wrong, and you let HMRC know straightaway when you found it was wrong.

“We may not charge you a penalty for an inaccuracy if you: … took reasonable care to get things right, but your country-by-country report was still wrong … let us know straightaway if you find your report is wrong”

HMRC's factsheet CC/FS59 says you may not be liable to a penalty for a failure if you have a reasonable excuse, the failure was not deliberate and you told HMRC without unreasonable delay after your reasonable excuse ended.

“You may not be liable to a penalty for the failure if all the following apply: … you have a reasonable excuse for the failure … the failure was not deliberate … you told us without unreasonable delay after your reasonable excuse ended”

HMRC's factsheet CC/FS59 says that if HMRC finds an inaccuracy it will give you the opportunity to correct the report or additional information, and that if it is not an inaccuracy you must tell HMRC why the information is accurate, which is called an error correction request.

“If we find an inaccuracy, we’ll give you the opportunity to correct the country-by-country report or additional information. If it’s not an inaccuracy, you must tell us why the information is accurate. This is called an error correction request.”

HMRC's factsheet CC/FS59 says you can appeal against penalties charged in relation to a country-by-country report by writing to HMRC within 30 days from the date it tells you about the penalty, giving your reasons for appealing.

“You can appeal against any penalties we charge you in relation to a country-by-country report. You do this by writing to us within 30 days from the date we tell you about the penalty. If you decide to appeal, you must tell us your reasons for appealing when you write to us.”

HMRC's factsheet CC/FS59 says that if health or personal circumstances made it difficult for you to notify HMRC of your liability to tax, telling the officer carrying out the check means they can take this into account when considering whether you had a reasonable excuse.

“If there was anything about your health or personal circumstances that made it difficult for you to notify us of your liability to tax, please tell the officer that is carrying out the check. Telling them will mean that they can take this into account when considering whether you had a reasonable excuse.”

HMRC's factsheet CC/FS68a says it tells you about electronic sales suppression (ESS), the powers HMRC can use to identify and tackle it, and the penalties it may charge if you are in possession of an ESS tool.

“This factsheet tells you about electronic sales suppression (ESS). It explains the powers we can use to help us identify and tackle ESS. It also explains the penalties we may charge if you’re in possession of an ESS tool.”

HMRC's factsheet CC/FS68a explains that ESS is where a business uses a tool to hide or reduce the value of individual transactions on its electronic sales records, which HMRC calls sales suppression.

“ESS is where a business uses a tool to either hide or reduce the value of individual transactions on its electronic sales records. We call this sales suppression.”

HMRC's factsheet CC/FS68a says HMRC may charge a penalty for being in possession of an ESS tool, even if you did not use it.

“We may charge you a penalty for being in possession of an ESS tool, even if you didn’t use it.”

HMRC's factsheet CC/FS68a says being in possession of an ESS tool includes owning it, having access to it and trying to access it.

“Being ‘in possession’ of an ESS tool includes: … owning an ESS tool … having access to an ESS tool … trying to access an ESS tool”

HMRC's factsheet CC/FS68a says that when it first suspects you are in possession of an ESS tool it will write to tell you to remove it or stop using it, and that if you do not satisfy HMRC that you have removed the tool it will charge a fixed penalty.

“When we first suspect you’re in possession of an ESS tool, we’ll write to tell you to remove it or stop using it. … If you don’t satisfy us you’ve removed the tool, we’ll charge you a fixed penalty.”

HMRC's factsheet CC/FS68a says that if you have been charged an ESS penalty in the past 5 years, HMRC will immediately charge the fixed penalty without writing first, and that this will be the full £1,000 fixed penalty.

“If we’ve charged you an ESS penalty in the past 5 years, we’ll immediately charge you the fixed penalty. We won’t write to you before we charge it. … If we’ve charged you an ESS penalty within the last 5 years, we’ll charge you the full £1,000 fixed penalty.”

HMRC's factsheet CC/FS68a says it can charge an initial fixed penalty of up to £1,000, and daily penalties of up to £75 per day, which it will charge until you satisfy HMRC you are no longer in possession of the ESS tool.

“We can charge an initial fixed penalty of up to £1,000. … After we charge you the fixed penalty, we’ll also charge you daily penalties. We’ll do this until you satisfy us you’re no longer in possession of the ESS tool. … we can charge daily penalties of up to £75 per day”

HMRC's factsheet CC/FS68a says it will not charge a penalty from the time you satisfy HMRC you are no longer in possession of an ESS tool, or if you have been convicted of a criminal offence for your involvement in ESS.

“We won’t charge you a penalty from the time you satisfy us you’re no longer in possession of an ESS tool. Or, if you’ve been convicted of a criminal offence for your involvement in ESS.”

HMRC's factsheet CC/FS68a says that if circumstances need a lower penalty than it would usually charge, it will reduce the penalty, which it calls a special reduction, and that this can only apply in exceptional circumstances.

“If we think there are any circumstances that need us to charge a lower penalty amount than we would usually charge, we’ll reduce the penalty. We call this a ‘special reduction’ and it can only apply in exceptional circumstances.”

HMRC's factsheet CC/FS68a says that if HMRC makes a decision you can appeal against, you can usually tell it you disagree in 3 ways within 30 days: send new information, have the case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear your appeal.

“You’ll usually have 3 ways to tell us if you disagree. Within 30 days, you can: … send new information to the officer dealing with the check and ask them to look at it … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's factsheet CC/FS68a says that if health or personal circumstances make it difficult to deal with HMRC, you can tell the officer who contacted you, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who has contacted you. We’ll help you in whatever way we can. … You can also ask someone else to deal with us on your behalf.”

HMRC's factsheet CC/FS69 says businesses that do not follow the Making Tax Digital for VAT requirements can be charged penalties, and that the factsheet sets out what to do to avoid being charged one.

“Businesses that do not do this can be charged penalties. This factsheet tells you what to do to avoid being charged a penalty.”

HMRC's factsheet CC/FS69 says that under Making Tax Digital (MTD), VAT registered businesses must keep certain records digitally and file their VAT returns using software.

“Under MTD, VAT registered businesses must keep certain records digitally and file their VAT returns using software.”

HMRC's factsheet CC/FS69 says functional compatible software is software that can record and store digital records, provide HMRC with information and VAT returns from those records, and receive information from HMRC.

“record and store digital records … provide HM Revenue and Customs (HMRC) with information and VAT returns from the data held in those digital records … receive information from HMRC”

HMRC's factsheet CC/FS69 says that if you file returns but do not use functional compatible software, HMRC may charge a penalty of up to £400 for every return you file.

“If you file your returns, but do not use functional compatible software, we may charge you a penalty of … up to £400 for every return you file.”

HMRC's factsheet CC/FS69 says you must keep some records digitally in your software, known as your electronic account, and that if you do not, HMRC may charge between £5 and £15 for every day you do not meet this requirement.

“You must keep some records digitally within your functional compatible software. This is known as your ‘electronic account’. … If you do not keep these records digitally, we may charge you a penalty of between £5 to £15 for every day on which you do not meet this requirement.”

HMRC's factsheet CC/FS69 says all transactions must be in your electronic account, but you do not need to scan paper records such as invoices and receipts.

“All transactions must be contained in your electronic account but you do not need to scan paper records like invoices and receipts.”

HMRC's factsheet CC/FS69 explains that a digital link is where data is transferred or exchanged electronically between software programs, that data must not be transferred manually, and that cut and paste or copy and paste is not a digital link.

“A digital link is where you transfer or exchange data electronically between software programs, apps or products. You must not transfer or exchange data manually. … Use of ‘cut and paste’ or ‘copy and paste’ to select and move information is not a digital link.”

HMRC's factsheet CC/FS69 says that if you do not use digital links to transfer data between pieces of software, HMRC may charge between £5 and £15 for every day you do not meet this requirement.

“If you do not use digital links to transfer data between pieces of software, we may charge you a penalty of between £5 to £15 for every day on which you do not meet this requirement.”

HMRC's factsheet CC/FS69 says you must use the checking functions in your software before filing, and that if you file a return with errors you will have to pay back any VAT you owe and may also be charged a penalty of up to 100% of the VAT you owe.

“You must use the checking functions within your software to make sure your returns are correct before you file them. … If you file a return that contains errors, you will have to pay back any VAT that you owe. We may also charge you a penalty of up to 100% of the VAT you owe.”

HMRC's factsheet CC/FS69 says you must have functional compatible software in place before you sign up to MTD.

“To sign up to MTD, go to www.gov.uk and search for ‘VAT record keeping’. You must have functional compatible software in place before you sign up.”

HMRC's factsheet CC/FS69 says that if you need further support you can go to GOV.UK and search for 'VAT general enquiries'.

“If you need further support, go to www.gov.uk and search for ‘VAT general enquiries’.”

HMRC's factsheet CC/FS69 says that if you are not happy with HMRC's service you can tell the person or office you have been dealing with, who will try to put things right, and that if you are still not happy they will tell you how to make a formal complaint.

“Please tell the person or office you’ve been dealing with. They’ll try to put things right. If you are still not happy, they’ll tell you how to make a formal complaint.”

HMRC's factsheet CC/FS76 says it tells you about the penalties HMRC may charge and other sanctions it can apply if you do not comply with the UK Tobacco Track and Trace regulations.

“This factsheet tells you about the penalties we may charge and other sanctions we can apply if you don’t comply with those regulations.”

HMRC's factsheet CC/FS76 says that if you manufacture, import, transport, store or sell certain tobacco products in the UK, you must follow the UK Tobacco Track and Trace (TT&T) regulations.

“If you manufacture, import, transport, store or sell certain tobacco products in the UK, you must follow the UK Tobacco Track and Trace (TT&T) regulations.”

HMRC's factsheet CC/FS76 says that if it finds you have not complied with the regulations it may charge a penalty, and that the amount depends on how many units of non-compliant tobacco were found and how many previous times it has found you have not complied.

“If we find that you haven’t complied with the regulations, we may charge you a penalty. The amount of any penalty will depend on: … how many units of non-compliant tobacco products were found on this occasion … how many previous times we’ve found you haven’t complied with the regulations”

HMRC's factsheet CC/FS76 explains that a unit is 20 cigarettes or 30g of hand-rolling tobacco.

“A unit is 20 cigarettes or 30g of hand-rolling tobacco.”

HMRC's factsheet CC/FS76 sets out penalty amounts by number of times not complied and units found: once, £2,500 for less than 100 units up to £10,000 for 500 or more units; twice, £5,000 to £10,000; three or more times, £7,500 to £10,000.

“Number of times you’ve not complied with the regulations | Less than 100 units found on this occasion | 100 to 299 units found on this occasion | 300 to 499 units found on this occasion | 500 or more units found on this occasion … Once | £2,500 | £5,000 | £7,500 | £10,000 … Twice | £5,000 | £7,500 | £10,000 | £10,000 … Three or more | £7,500 | £10,000 | £10,000 | £10,000”

HMRC's factsheet CC/FS76 says that if it finds you have not complied more than once it may apply other sanctions, including deactivating your EOID code and the FID code for the facility where the non-compliant tobacco was found.

“If we find that you haven’t complied with the regulations more than once, we may apply other sanctions. … If you hold an EOID for the sale of tobacco products on your premises, we can deactivate your EOID code. We can also deactivate the FID code for the facility where the non-compliant tobacco was found.”

HMRC's factsheet CC/FS76 gives deactivation periods: not applicable the first time; the second time 6 months, or 5 years if 500 or more units were found; and 5 years for three or more times.

“Number of times you’ve not complied with the regulations | Less than 100 units found on this occasion | 100 to 299 units found on this occasion | 300 to 499 units found on this occasion | 500 or more units found on this occasion … Once | Not applicable | Not applicable | Not applicable | Not applicable … Twice | 6 months | 6 months | 6 months | 5 years … Three or more | 5 years | 5 years | 5 years | 5 years”

HMRC's factsheet CC/FS76 says that if it is considering deactivation it will write to let you know and give you the chance to tell it why you think it should not deactivate your EOID or FID, then consider all the evidence before deciding.

“If we’re considering deactivation, we’ll write to let you know. We’ll give you the chance to tell us why you think we shouldn’t deactivate your EOID or FID. We’ll then consider all the evidence about your case and make our decision.”

HMRC's factsheet CC/FS76 says it can also seize and permanently remove compliant tobacco products found on your premises at the same time as illicit tobacco products, which is described as forfeiture.

“We can also seize and permanently remove compliant tobacco products that we find on your premises at the same time as illicit tobacco products. This is described as ‘forfeiture’ of those products.”

HMRC's factsheet CC/FS76 says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have your case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear your appeal.

“You’ll usually have 3 options. … Within 30 days, you can: … send new information to the officer dealing with the check and ask them to take it into account … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's factsheet CC/FS76 says that if health or personal circumstances make it difficult to deal with HMRC, you can tell the officer who contacted you, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who contacted you. We’ll help you in whatever way we can. … You can also ask someone else to deal with us on your behalf.”

HMRC's factsheet CC/FS77 says that if you are liable to pay the Economic Crime Levy, it tells you about the penalties HMRC may charge if you do not comply with your obligations.

“If you’re liable to pay the levy, this factsheet tells you about the penalties we may charge you if you don’t comply with your obligations.”

HMRC's factsheet CC/FS77 explains that the Economic Crime Levy (ECL) is an annual charge on businesses regulated for anti-money laundering purposes whose UK revenue is more than £10.2 million per year.

“The Economic Crime Levy (ECL) is an annual charge on businesses that are regulated for anti-money laundering purposes, and whose UK revenue is more than £10.2 million per year.”

HMRC's factsheet CC/FS77 says the businesses within the Economic Crime Levy need to submit a return and pay the levy every year.

“Those businesses need to submit a return and pay the levy every year.”

HMRC's factsheet CC/FS77 says that if HMRC opens a compliance check into your ECL return it will write to let you know, and that if it then finds something wrong it can charge penalties that are tax-related or fixed.

“If we’re opening a compliance check into your ECL return, we’ll write to let you know. If we then find something wrong, we can charge you penalties. These can be ‘tax-related’ or fixed, depending on what we’ve found.”

HMRC's factsheet CC/FS77 says an ECL return must be submitted on or before 30 September after the end of each financial year, and that HMRC can charge an initial penalty of £250 if it is not.

“You need to submit an ECL return on or before 30 September after the end of each financial year. If you don’t do this, we can charge you an initial penalty of £250.”

HMRC's factsheet CC/FS77 says that if you still have not submitted a return within 3 months of the due date it can charge a further penalty of 5% of the levy due for the financial year, using a reasonable estimate of the levy based on the information it has.

“If you still haven’t submitted a return within 3 months of the due date, we can charge you a further penalty. That penalty is 5% of the levy you’re due to pay for the financial year. We’ll use the information we have to make a reasonable estimate of the levy due.”

HMRC's factsheet CC/FS77 lists the late payment penalties: an initial £250 for not paying by the due date, an additional £250 if not paid 30 days after, and 5% of the levy if still unpaid 3 months after the due date.

“If you don’t pay the full amount on time, we can charge you late payment penalties. These are: … an initial penalty of £250 for not paying by the due date … an additional £250 penalty if you haven’t paid 30 days after the due date … a penalty of 5% of the levy, if you still haven’t paid 3 months after the due date”

HMRC's factsheet CC/FS77 says a tax-related penalty can be charged if you submit an inaccurate ECL return or do not tell HMRC an assessment was too low or a repayment too high, and that the penalty is 5% of the levy not declared or told to HMRC.

“We can charge a ‘tax related’ penalty if (any of the following): … you submit an inaccurate ECL return … you do not tell us that an assessment we made was too low … you do not tell us that a repayment we made was too high … For the ECL, the penalty is 5% of the amount of levy that you didn’t declare or tell us about.”

HMRC's factsheet CC/FS77 says that if it finds you have not kept accurate records for ECL purposes it may charge a fixed penalty of up to £3,000, depending on what it finds about your record keeping and whether it stopped you declaring the right amount.

“If we find that you haven’t kept accurate records for ECL purposes, we may charge you a penalty. … This is a fixed penalty and can be up to £3,000. The amount we’ll charge depends on what we find about your record keeping, and whether it stopped you from declaring the right amount of ECL.”

HMRC's factsheet CC/FS77 says it will not charge a penalty if you have a reasonable excuse for not meeting an ECL obligation.

“We won’t charge you a penalty if you have a reasonable excuse for not meeting an ECL obligation.”

HMRC's factsheet CC/FS77 says that if HMRC charges a penalty it will send a penalty notice that tells you how to appeal if you disagree, and that you can also appeal against any assessment it sends.

“If we charge you a penalty, we’ll send you a penalty notice. If you disagree, you’ll be able to appeal. The penalty notice will tell you how. … You’ll also be able to appeal against any assessment we send you.”

HMRC's factsheet CC/FS77 says that if your health or personal circumstances contributed to you not meeting your tax obligations, telling the officer you are dealing with means they can take this into account when considering whether you had a reasonable excuse.

“If there was anything about your health or personal circumstances that contributes to you not meeting your tax obligations, please tell the officer you’re dealing with. Telling them will mean that they can take this into account when considering whether you had a reasonable excuse.”

HMRC's factsheet CC/FS78 says that if you are a producer of alcohol you need to submit returns and pay Alcohol Duty to HMRC, and that the factsheet tells you about the penalties HMRC can charge if you do not comply.

“If you’re a producer of alcohol, you need to submit returns and pay Alcohol Duty to HMRC. This factsheet tells you about the penalties we can charge you if you don’t comply with these requirements.”

HMRC's factsheet CC/FS78 says that to meet the conditions for approval as an alcohol producer you must submit alcohol production returns and account for and pay the duty on production removed from approved premises.

“To meet the conditions for our approval as an alcohol producer you must: … submit alcohol production returns … account for and pay the duty on production removed from approved premises (‘removed to home use’)”

HMRC's factsheet CC/FS78 says the penalties are charged under section 9 of the Finance Act 1994 and can be a fixed amount, a geared penalty calculated on the amount of duty paid late, or a daily amount.

“We can charge these penalties under section 9 of the Finance Act 1994. A penalty can be a: … ‘fixed penalty’ … this is a fixed amount … ‘geared penalty’ … we calculate this on the amount of duty paid late … ‘daily penalty’ … this is a daily amount”

HMRC's factsheet CC/FS78 says it can charge a fixed £250 penalty if you do not submit a return on time, for each late return, so for example 10 outstanding returns could mean 10 penalties of £250, which is £2,500 in total.

“We can charge a fixed £250 penalty if you don’t submit a return on time. … We can charge a penalty for each return that is late. For example, if 10 returns are outstanding, we may charge you 10 £250 penalties. This is £2,500 in total.”

HMRC's factsheet CC/FS78 says that if you pay duty late it can charge a geared penalty of either 5% of the amount of duty due or £250, whichever is the higher amount.

“We can charge a penalty if you pay the duty late. This is either 5% of the amount of duty due or £250, whichever is the higher amount.”

HMRC's factsheet CC/FS78 gives examples of the geared penalty: £9,000 of duty paid late gives a penalty of £450, while £4,000 gives a penalty of £250 because 5% of £4,000 is £200, which is lower than the £250 minimum.

“For example, if there is £9,000 of duty paid late, the penalty will be 5% of this amount. This is £450. If the duty is £4,000, the penalty would be £250. This is because 5% of £4,000 is £200. This is lower than the £250 minimum amount.”

HMRC's factsheet CC/FS78 says that if it charges a fixed or geared penalty it can also charge daily penalties until you put things right, at a rate of £20 a day for each day you do not comply.

“If we charge you a fixed or geared penalty, we can also charge you daily penalties. We can do this until you put things right. … we charge these at a rate of £20 a day for each day you don’t comply.”

HMRC's factsheet CC/FS78 says it will not charge a penalty if you have a reasonable excuse for not submitting returns or paying what you owe on time.

“We won’t charge you a penalty if you have a reasonable excuse for not submitting your returns or paying what you owe on time.”

HMRC's factsheet CC/FS78 says that if it charges a fixed, geared or daily penalty it will send a penalty notice, and that if you disagree you will be able to appeal, with the notice telling you how.

“If we charge you a fixed, geared or daily penalty, we’ll send you a penalty notice. If you disagree, you’ll be able to appeal. The penalty notice will tell you how.”

HMRC's factsheet CC/FS78 says you need to make sure the information on your return is complete and accurate, and that if you do not, HMRC can charge an inaccuracy penalty.

“you need to make sure the information on your return is complete and accurate. If you don’t do this, we can charge you an ‘inaccuracy penalty’.”

HMRC's factsheet CC/FS78 says that if health or personal circumstances make it difficult to deal with HMRC you can tell it and it will help in whatever way it can, and that you can ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell us. We’ll help you in whatever way we can. … You can ask someone else to deal with us on your behalf. For example, a professional adviser, friend or relative.”

HMRC's factsheet CC/FS87 says it tells you about the penalties HMRC may charge and other sanctions it can apply if you do not comply with the vaping duty stamp regulations.

“This factsheet tells you about the penalties we may charge and other sanctions we can apply if you do not comply with those regulations.”

HMRC's factsheet CC/FS87 says that if you want to purchase or affix duty stamps in the UK, you must follow The Vaping Products (Production, Duty Stamps and Commencement) Regulations 2026.

“If you want to purchase or affix duty stamps in the UK, you must follow The Vaping Products (Production, Duty Stamps and Commencement) Regulations 2026.”

HMRC's factsheet CC/FS87 says penalties relating to vaping duty stamps apply from 1 April 2026, and may be charged for matters such as selling unstamped vaping products, dealing with an invalid duty stamp, or losing stamps or not affixing, activating, returning or destroying one within 12 months of issue.

“Penalties relating to vaping duty stamps will apply from 1 April 2026. … We may charge penalties if you: … sell, offer for sale, deal in, or package for retail sale unstamped vaping products … use, possess or deal with an invalid duty stamp, including altered, counterfeit or voided stamps … lose duty stamps, or a stamp has not been affixed, activated, returned or destroyed within 12 months of issue”

HMRC's factsheet CC/FS87 says it may charge a penalty if you sell, offer for sale or deal in unstamped vaping products packaged for retail sale, that these penalties apply from 1 October 2026, and that a unit means an amount of vaping product packaged for individual retail sale.

“We may charge you a penalty if you sell, offer for sale or deal in unstamped vaping products packaged for retail sale. These penalties apply from 1 October 2026. … A unit means an amount of vaping product packaged for individual retail sale.”

HMRC's factsheet CC/FS87 gives penalty amounts by units found: the first time from £2,500 for less than 100 units to £10,000 for 500 or more, the second time £5,000 to £10,000, and three or more times £7,500 to £10,000.

“How many units found on this occasion | First time | Second time | Three or more times … Less than 100 units | £2,500 | £5,000 | £7,500 … 100 to 299 units | £5,000 | £7,500 | £10,000 … 300 to 499 units | £7,500 | £10,000 | £10,000 … 500 or more units | £10,000 | £10,000 | £10,000”

HMRC's factsheet CC/FS87 says that if you continue to fail to comply it may charge further penalties, looking at the number of times you have failed over a relevant period of 24 months leading up to the day you became liable to the penalty.

“If you continue to fail to comply with the regulations we may charge further penalties. If we do, we’ll look at the number of times you’ve failed to comply with the regulations over a ‘relevant period’. The relevant period is 24 months leading up to the day you became liable to the penalty.”

HMRC's factsheet CC/FS87 says an approved stamp holder is liable to a penalty for lost, stolen or misused duty stamps, and that if a stamp is lost the penalty will be five times the Vaping Products Duty due on a standard 10ml quantity.

“If you’re an approved stamp holder, you’ll be liable to a penalty for any lost, or treated as lost, stolen or misused duty stamps. … If a duty stamp is lost, the penalty applied will be five times the Vaping Products Duty due on a standard 10ml quantity.”

HMRC's factsheet CC/FS87 says it will not charge a penalty for a lost stamp if you did not cause the loss and you took all reasonable steps to prevent it.

“We will not charge a penalty if you did not cause the loss, and you took all reasonable steps to prevent the loss.”

HMRC's factsheet CC/FS87 says vaping duty products and duty stamps are liable to forfeiture, meaning seizing and permanently removing, where the rules have not been followed, and that it may stop a business that keeps failing to comply from buying vaping duty stamps.

“Vaping duty products and duty stamps are liable to forfeiture in circumstances where the rules have not been followed. Forfeiture means seizing and permanently removing from the premises. … If a business keeps failing to comply with the regulations, this includes continuous and repeat offending, we may stop them from buying vaping duty stamps.”

HMRC's factsheet CC/FS87 says that in the most serious cases it may carry out a criminal investigation and prosecute you, and that if convicted you could face an unlimited fine or imprisonment for up to 2 years, or both.

“In the most serious cases, we may carry out a criminal investigation and prosecute you. If you’re found guilty and convicted, you could face an unlimited fine or imprisonment for up to 2 years, or both.”

HMRC's factsheet CC/FS87 says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have your case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear your appeal.

“You’ll usually have 3 options. … Within 30 days, you can: … send new information to the officer dealing with the check and ask them to consider it … have your case reviewed by an HMRC officer who has not been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's factsheet CC/FS87 says that if health or personal circumstances make it difficult to deal with HMRC, you can tell the officer who contacted you, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who has contacted you. We’ll help you in whatever way we can. … You can also ask someone else to deal with us on your behalf.”

HMRC's factsheet CC/FS96 says it tells you about the penalties HMRC may charge if it has issued a determination under section 62A or 62B of the Finance Act 2004 for the Construction Industry Scheme (CIS).

“This factsheet tells you about the penalties we may charge if we’ve issued a determination under either section 62A or 62B of the Finance Act 2004 for the Construction Industry Scheme (CIS).”

HMRC's factsheet CC/FS96 says HMRC may charge a penalty if a person or company makes a payment for construction operations, or claims a CIS credit in a return, and knew or should have known it was linked to deliberate non-compliance by a connected party.

“We may charge a penalty if a person or company makes a payment for construction operations, or claims a CIS credit in a return, and knew or should have known it was linked to deliberate non-compliance by a connected party.”

HMRC's factsheet CC/FS96 says a penalty can be charged under section 72A of the Finance Act 2004 on payments made, or CIS credits claimed, after 6 April 2026.

“A penalty can be charged: … under section 72A of the Finance Act 2004 on payments made, or CIS credits claimed, after 6 April 2026”

HMRC's factsheet CC/FS96 says the penalty will be 30% of the determined amount, and gives an example in which a determination of £1,000 gives a penalty of £300.

“The amount of the penalty will be 30% of the determined amount. For example, if the determination was for £1,000, then the penalty would be £300.”

HMRC's factsheet CC/FS96 says it may reduce the penalty depending on the facts of each case, considering things such as full and meaningful admissions, accepting its findings, and early co-operation, with prompt co-operation earning more reduction than late.

“We may reduce the penalty amount. … make full and meaningful admissions that save us time and effort … accept our findings after we find a determination is required … co-operate early … prompt co-operation will earn more penalty reduction than late co-operation”

HMRC's factsheet CC/FS96 says it will send a notice of penalty determination that tells you how much the penalty is, how it has been worked out, how to pay and what to do if you disagree.

“We’ll send you a notice of penalty determination. This will tell you (all of the following): … how much the penalty is … how we’ve worked it out … how to pay the penalty … what to do if you disagree”

HMRC's factsheet CC/FS96 says a company officer may be liable to pay some or all of the company's penalty if the company is liable on the amount determined as connected to deliberate non-compliance and the actions that led to the penalty were attributable to the officer.

“A company officer may be liable to pay some or all of the company’s penalty if (both of the following): … the company is liable to a penalty on the amount we’ve determined was connected to deliberate non-compliance under section 62A or 62B of the Finance Act 2004 … the actions that led to the penalty, were attributable to the company officer”

HMRC's factsheet CC/FS96 says it will tell a company officer it is considering making them personally liable and give them the opportunity to say why it should not make them pay or how much, and that the officer must within 30 days either pay the amount shown in the notice or appeal if they disagree.

“tell them that we’re considering making them personally liable to pay a penalty amount … give them the opportunity to tell us why we shouldn’t make them pay or how much they should pay … the company officer must, within 30 days, either: … pay the amount shown in the notice … appeal if they disagree that they’re liable to pay or don’t agree with the amount attributed to them”

HMRC's factsheet CC/FS96 says that if HMRC makes a decision you can appeal against, you can usually send new information, ask for a review by an HMRC officer not involved in the matter, or appeal to an independent tribunal, and must do this within 30 days of its notification.

“You can usually: … send new information to the officer dealing with the check and ask them to consider it … ask for a review by an HMRC officer who has not been involved in the matter … appeal to an independent tribunal … You must do this within 30 days of our notification.”

HMRC's factsheet CC/FS96 says you can avoid a penalty by making sure your business does not become involved in any transactions connected to CIS deliberate non-compliance.

“You can avoid a penalty by making sure your business doesn’t become involved in any transactions connected to CIS deliberate non-compliance.”

HMRC's factsheet CC/FS96 says you may be able to use Alternative Dispute Resolution (ADR), where a trained HMRC mediator helps you and the officer dealing with the check work towards resolving the dispute, and that ADR does not affect your right to appeal or ask for a statutory review.

“You may be able to use Alternative Dispute Resolution (ADR). This involves a trained HMRC mediator helping you and the officer dealing with the check, work towards resolving the dispute. ADR does not affect your right to appeal or ask for a statutory review.”

HMRC's factsheet CC/FS96 says that if health or personal circumstances make it difficult to deal with HMRC, you can tell the officer who contacted you, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell the officer who has contacted you. We’ll help you in whatever way we can. … You can also ask someone else to deal with us on your behalf.”

HMRC's Fulfilment House Due Diligence Scheme factsheet says it tells you about the penalties HMRC may charge, and other sanctions it can use, if you do not comply with the scheme's regulations.

“This factsheet tells you about the penalties we may charge, and other sanctions we can use, if you don’t comply with those regulations.”

HMRC's Fulfilment House Due Diligence Scheme factsheet says that if you store, handle or ship goods for customers from outside the UK before they are sold to UK customers, you must follow the Fulfilment House Due Diligence Scheme (FHDDS) Regulations.

“If you store, handle or ship goods for customers from outside the UK before they’re sold to UK customers, you must follow the Fulfilment House Due Diligence Scheme (FHDDS) Regulations.”

HMRC's Fulfilment House Due Diligence Scheme factsheet says HMRC may charge a failure to notify penalty if you do not apply for FHDDS approval at the correct time or carry on a fulfilment business without being an approved person.

“We may charge you a ‘failure to notify’ penalty if you: … don’t apply for the FHDDS approval at the correct time … carry on a fulfilment business but aren’t an approved person.”

HMRC's Fulfilment House Due Diligence Scheme factsheet says HMRC will not charge a penalty if you can show a reasonable excuse for carrying on a fulfilment business without approval or trading without being approved at the correct time, but that a reasonable excuse will not apply if it decides your behaviour is deliberate.

“We won’t charge a penalty if you can show you had a reasonable excuse for (either): … carrying on a fulfilment business without approval … trading without being approved at the correct time. … A reasonable excuse won’t apply if we decide your behaviour is deliberate.”

HMRC's Fulfilment House Due Diligence Scheme factsheet sets out the penalty for non-deliberate behaviour: a maximum of 30% (£3,000), with a minimum of 20% (£2,000) for a prompted disclosure and 10% (£1,000) for an unprompted disclosure.

“Non-deliberate (without reasonable excuse) | Percentage of ‘maximum amount’ | Monetary value … Maximum penalty | 30% | £3,000 … Minimum penalty for prompted disclosure | 20% | £2,000 … Minimum penalty for unprompted disclosure | 10% | £1,000”

HMRC's Fulfilment House Due Diligence Scheme factsheet sets out the penalty for deliberate but not concealed behaviour: a maximum of 70% (£7,000), with a minimum of 35% (£3,500) for a prompted disclosure and 20% (£2,000) for an unprompted disclosure.

“Deliberate but not concealed | Percentage of ‘maximum amount’ | Monetary value … Maximum penalty | 70% | £7,000 … Minimum penalty for prompted disclosure | 35% | £3,500 … Minimum penalty for unprompted disclosure | 20% | £2,000”

HMRC's Fulfilment House Due Diligence Scheme factsheet sets out the penalty for deliberate and concealed behaviour: a maximum of 100% (£10,000), with a minimum of 100% (£10,000) for a prompted disclosure and 30% (£3,000) for an unprompted disclosure.

“Deliberate and concealed | Percentage of ‘maximum amount’ | Monetary value … Maximum penalty | 100% | £10,000 … Minimum penalty for prompted disclosure | 100% | £10,000 … Minimum penalty for unprompted disclosure | 30% | £3,000”

HMRC's Fulfilment House Due Diligence Scheme factsheet says a disclosure is unprompted if you give information and documents without having a reason to believe HMRC has discovered or is about to discover the failure, and that otherwise it is a prompted disclosure.

“A disclosure is unprompted if a person gives information and documents to us without having a reason to believe we’ve discovered or are about to discover the failure. Otherwise, it’s a prompted disclosure.”

HMRC's Fulfilment House Due Diligence Scheme factsheet says HMRC may also charge other penalties if you do not meet a condition or restriction of approval, which can be £500 for each contravention, or do not notify it of non-compliant customers, which can be £3,000 for each contravention.

“We can charge these if you don’t: … meet any condition or restriction of approval under the scheme imposed by us … this can be a £500 penalty for each contravention … notify us of non-compliant customers, where the registered business knows or has reasonable grounds to suspect that the customer isn’t meeting its UK VAT or customs duty obligations … this can be £3,000 penalty for each contravention.”

HMRC's Fulfilment House Due Diligence Scheme factsheet says forfeiture means removal of goods from your business, which HMRC may do if it finds goods being stored by a person carrying on an imported goods fulfilment business without FHDDS approval.

“Forfeiture means removal of goods from your business. We may do this if we find goods are being stored by a person: … who’s carrying on an imported goods fulfilment business without FHDDS approval”

HMRC's Fulfilment House Due Diligence Scheme factsheet says that if HMRC makes a decision you can appeal against, you will usually have 3 options within 30 days: send new information, have your case reviewed by an HMRC officer not involved in it, or arrange for an independent tribunal to hear your appeal.

“You’ll usually have 3 options. Within 30 days, you can: … send new information to the officer dealing with the check and ask them to take it into account … have your case reviewed by an HMRC officer who hasn’t been involved in the matter … arrange for an independent tribunal to hear your appeal and decide the matter”

HMRC's Fulfilment House Due Diligence Scheme factsheet says that if your health or personal circumstances make it difficult to deal with HMRC and you need extra support, you can tell it what help you need, and that you can also ask someone else, such as an adviser, friend or relative, to deal with HMRC for you.

“If your health or personal circumstances make it difficult for you to deal with us and you need extra support, please tell us what help you need. … You can also ask someone else to deal with us on your behalf. For example, a professional adviser, friend or relative.”