DANSP38200 - Notices of decision: Wording of penalties’ decisions
Most penalty notices are issued automatically when returns are not submitted. The decisions are appealable. In such cases form DAA1 is not used, the penalty notice tells the recipient they have a right of appeal against the penalty.
Customer Compliance may discover that an employer has either completed a return incorrectly or has failed to make a return, for example, where there are earnings on which National Insurance contributions (NIC) are due which were not included on deduction working sheets. In such cases, if they cannot reach a settlement with the employer they are required to issue a penalty determination (see EM5252). The determination is an appealable decision. In such cases do not use form DAA1.