18(1)Where P is liable for a penalty under any paragraph of this Schedule HMRC must—U.K.
(a)assess the penalty,
(b)notify P, and
(c)state in the notice the period in respect of which the penalty is assessed.
(2)A penalty under any paragraph of this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.
(3)An assessment of a penalty under any paragraph of this Schedule—
(a)is to be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by this Schedule),
(b)may be enforced as if it were an assessment to tax, and
(c)may be combined with an assessment to tax.
(4)A supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of the liability to tax which would have been shown in a return.
[F1(5)Sub-paragraph (6) applies if—
(a)an assessment in respect of a penalty is based on a liability to tax that would have been shown in a return, and
(b)that liability is found by HMRC to be excessive.
(6)HMRC may by notice to P amend the assessment so that it is based upon the correct amount.
(7)An amendment under sub-paragraph (6)—
(a)does not affect when the penalty must be paid;
(b)may be made after the last day on which the assessment in question could have been made under paragraph 19.]
Textual Amendments
F1Sch. 55 para. 18(5)-(7) substituted (with effect in accordance with Sch. 50 para. 16(2) of the amending Act) for Sch. 55 para. 18(5) by Finance Act 2013 (c. 29), Sch. 50 para. 7
Modifications etc. (not altering text)
C1Sch. 55 applied (with modifications) by S.I. 2001/1004, Sch. 4 para. 21G (as inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2014 (S.I. 2014/2397), regs. 1(1), 3(5))
C2Sch. 55 paras. 18-23 applied (with modifications) (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 24(6)
C3Sch. 55 modified (temp.) (with effect in accordance with Sch. 10 para. 43 of the amending Act) by Finance Act 2022 (c. 3), Sch. 10 para. 26 (as amended (5.1.2023) by S.I. 2022/1321, regs. 1, 2(2)
C4Sch. 55 para. 18(1) modified (10.12.2021 for specified purposes and with effect in accordance with s. 85(1)(b) of the amending Act) by Finance Act 2021 (c. 26), s. 85(1)(a), Sch. 15 para. 8(2)(a); S.I. 2021/1409, reg. 3
Commencement Information
I1Sch. 55 para. 18 in force at 1.4.2011 for specified purposes and 6.4.2011 for specified purposes by S.I. 2011/702, art. 2 (with art. 1(2))
I2Sch. 55 para. 18 in force at 6.10.2011 for specified purposes by S.I. 2011/2391, art. 2(b) (with art. 3(1)(2))
I3Sch. 55 para. 18 in force at 6.10.2014 for specified purposes and 6.3.2015 for specified purposes by S.I. 2014/2395, art. 2(1)(b)
I4Sch. 55 para. 18 in force at 1.1.2015 for specified purposes by S.I. 2014/3269, art. 2
I5Sch. 55 para. 18 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)
I6Sch. 55 para. 18 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 29(3)