CH270200 - How to do a compliance check: penalties for failure to comply with notices: daily penalties
Source: gov.uk (2025-12-05)


This page and chapter are under review as the relevant content is also published in the technical guidance chapters of the Compliance Handbook (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook), within Compliance checks factsheets (https://www.gov.uk/government/collections/hm-revenue-and-customs-compliance-checks-factsheets) and in Compliance checks guidance (https://www.gov.uk/guidance/hmrc-compliance-checks-help-and-support). If you use particular pages regularly, please email xxx@xxx.xx (mailto:xxx@xxx.xx) to let us know the specific content you find useful.

If the failure to comply with your notice or the obstruction of your tribunal-approved inspection continues after you have assessed an initial £300 penalty, you need to consider assessing daily penalties, see CH26660 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch26660) for information notice and CH29540 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch29540) for data-holder notice.

Before you do this, you should review the case with your line manager and try to make contact with the person to whom you sent the notice to see if you can help them to comply.

Where there has been a failure to comply with a notice under Sch36, FA08 or Sch23, FA11 you must get agreement from a penalty authorising officer, see CH271500 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch271500), to assess daily penalties. The authorising officer will normally be your manager unless the offence is that of deliberately obstructing a tribunal-approved inspection, in which case you must seek the agreement of an authorised officer, see CH260000 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch260000).

Where there has been a failure to comply with an excise information notice under section 118BA, CEMA79 you must get agreement from an independent, trained manager at grade SO or above, to assess daily penalties.

When you decide the amount of daily penalty you should consider the factors set out at CH26680 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch26680) for information notice and CH29540 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch29540) for data-holder notice.

CH26700 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch26700) explains what period to assess for daily penalties. You should not delay assessing daily penalties as the amount to be assessed may mount up quickly. You should consider assessing daily penalties 30 days after an initial penalty and each 30 days thereafter.

CH26860 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch26860) and CH29730 (https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch29730) explain the time limits within which you must issue a penalty assessment.

Penalty assessment charges will be created on NPPS.

When you assess the penalty you should send the person a notice of assessment (with a copy to the agent if there is one).

You should send a copy of the original notice with your penalty assessment, marking the copy to show what you still need the person to provide and/or produce in order to comply.

The following penalty notice templates are available on SEES Forms and Letters:
- IIP14 Notices - daily penalties
- IIP15 Notices - daily penalties 2nd tranche
- IIP18 Inspection - daily penalties
- IIP19 Inspection - daily penalties 2nd tranche