CH404300 - Charging penalties: interaction between penalties: summary of interaction situations and action needed

Taxes	Interaction	Action needed
ANY	A failure to notify penalty and a late payment surcharge are payable on the same tax liability.	Discharge the surcharge. See CH404425 for further information and an operational example. Note: Section 59C, TMA70 surcharges have not been charged in years after 2009-10. Late payment penalties under Sch56, FA09 replaced them for balancing payments due on or after 31 January 2012. Late payment penalties must not be withdrawn in the way that late payment surcharges have to be cancelled as they apply independently from all other penalties.
IT and CGT (excluding PAYE) CIS	An inaccuracy or under assessment penalty is payable and any automatic tax geared failure to file penalty was incurred.	The inaccuracy penalty must be reduced by the amount of the 5% tax geared failure to file penalty that is charged automatically by SA or CIS on the additional tax when a return is amended or a discovery assessment is raised. See CH404450 for further information and an operational example.
IT and CGT (excluding PAYE) CIS	Six month and 12 month tax geared failure to file penalties exceed 100% of the liability to tax.	If you establish a penalty for failure to file and deliberate withholding of information that is more than 95% of the liability to tax, you will have to make an adjustment in NPPS to ensure that the two tax geared penalties for failure to file do not exceed 100% of the tax liability. See CH404475 for further information and an operational example.
IT, IHT	FA07/Sch24/Para1A inaccuracy penalties charged on more than one person exceed 100% of the liability to tax.	Reduce each penalty proportionately. See CH404500 for further information and an operational example.
IT, CGT and Class 4 NICs	An inaccuracy penalty and a late payment surcharge are payable.	Assess the full inaccuracy penalty. Check the SA system after 58 days to find out whether a surcharge has been incurred. Discharge the surcharge when the inaccuracy penalty has become final, for example, after the end of the appeal period or the conclusion of the appeal. See CH404525 for further information and an operational example. Note: Section 59C, TMA70 surcharges have not been charged in years after 2009-10. Late payment penalties under Sch56, FA09 replaced them for balancing payments due on or after 31 January 2012. Late payment penalties must not be withdrawn in the way that late payment surcharges have to be cancelled as they apply independently from all other penalties.
VAT	An under assessment penalty and VAT default surcharge are payable.	The under assessment penalty must be reduced by the amount of a default surcharge. See CH404550 for further information and an operational example.
Excise	A failure to notify penalty is payable and a penalty under FA1994/S9 was incurred.	Reduce the failure to notify penalty by the amount of the FA94/S9 penalty. See CH404575 for further information.
Excise	Penalties for misuse of rebated oil apply under both FA08/Sch41 and FA1994/S9.	Deduct from the Potential Lost Revenue the duty on the fuel in the vehicle on the day of the detection. See CH404600 for further information and an operational example.
Excise	Misuse of rebated oils penalties exceed 100% of the liability to tax.	Reduce each penalty proportionately. See CH404625 for further information and an operational example.