IEIM750060 - Penalties: Time Limits, Payment and Appeals

A penalty that is assessed by HMRC must be assessed by the latest of the following three dates:

• The date 24 months after the failure first came to the attention of an officer of HMRC
• The date six years after the date on which the person became liable to the penalty, and
• In relation to a daily penalty for a continuing failure, the date three years after the determination of the initial penalty.

Where a penalty is to be determined by the FTT, HMRC must commence proceedings before the FTT by the latest of the three dates above.

Penalties must be paid within 30 days of the penalty being determined by the FTT or within 30 days of the issue of the notice of determination in the case of penalties that are determined by HMRC.