CH407910 - Charging penalties: recording and calculating penalties on the National Penalties Processing System (NPPS): manual penalty cases: introduction

All new penalties to be charged, including those included in a contract settlement, must be recorded and authorised in NPPS.

Exceptionally, there may be some cases where it is not possible to issue the penalty assessment using NPPS because the person who is liable to the penalty is not registered within a tax regime.

This could happen when

• a person with a liability to a penalty for PAYE or VAT is no longer registered
• a person who is not a registered Excise trader is liable to an Excise wrongdoing penalty
• a non-registered person is liable to a penalty for a VAT inaccuracy, for example an overseas trader or claimant.

You cannot create a penalty case on NPPS

• without a Unique Taxpayer Identifier (UTI) type reference, or
• where CIS Sch55 failure to file penalties are incurred by non-registered contractors.

In these cases you must use the manual process to issue the penalty assessment and create a penalty charge.

The manual process must only be used when a case cannot be processed through NPPS.

See CH407950 which explains how to deal with appeals against these penalties.