Finance Act 2022

Procedure for assessing penalty etc

3 (1) Where a person is liable for a penalty under paragraph 1(2), an authorised officer of HMRC may assess the penalty.

(2) Where an authorised officer assesses the penalty the authorised officer must notify the person who is liable for the penalty.

(3) A penalty must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.

(4) An assessment of a penalty—

(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), and

(b) may be enforced as if it were an assessment to tax.

(5) An authorised officer may make a supplementary assessment in respect of a penalty where—

(a) consideration is received after the penalty was first assessed by any person who, at the time of the original activities, was a member of the promotion structure mentioned in paragraph 1(2)(a), or

(b) the officer considers it just and reasonable to make a supplementary assessment on the basis of information received after the penalty was first assessed.

(6) Sub-paragraph (7) applies if a penalty is assessed on the basis of an assessment of consideration received by a person that HMRC subsequently find to have been excessive.

(7) HMRC may amend the assessment so that it is based upon the correct amount.

(8) An amendment under sub-paragraph (7)—

(a) does not affect when the penalty must be paid, and

(b) may be made after the last day on which the assessment in question could have been made under sub-paragraph (9).

(9) An assessment of a person as liable to pay an amount in respect of a penalty under paragraph 1(2) may not take place more than 2 years after information sufficient to enable the assessment first came to the attention of HMRC.