CH194480 - Electronic sales suppression: penalty for possessing an electronic sales suppression tool: first occasion of possession
When we have sufficient evidence of facts to suggest that a person is in possession of an electronic sales suppression tool, we must issue the relevant correspondence. This can be either an electronic sales suppression tool removal instruction letter; or a penalty notice, depending on the compliance history of the person.
On the first occasion HMRC has reason to believe that a person is in possession of an electronic sales suppression tool, they will be given the opportunity to remove the tool within 30 days in order to avoid a penalty being charged. We will write instructing them to remove the tool within 30 days of the date of the letter; and requiring them to satisfy us that the tool has been removed.
We will be satisfied that the person has removed the tool if they confirm this in writing or allow us to inspect their POS system for confirmation. If we are satisfied that the tool has been removed, we will not charge a penalty. If the person does not satisfy us within 30 days that tool has been removed, the person is liable to a penalty of up to £1,000.
The person will also be a liable to a daily penalty of up to £75 per day for continued possession, beginning the day after we have charged the initial penalty of up to £1,000. The total amount of daily penalties we can charge is a maximum of £50,000 (irrespective of the values of the different daily penalties which make up the £50,000). The £50,000 maximum is additional to the initial penalty of up to £1,000.