Where a person fails to respond to an Information notice under Schedule 36 FA 2008 they may become liable to penalties, as determined by HMRC. In cases of extreme default the Upper Tribunal may also impose tax geared penalties.

Penalties in respect of information notices are as follows:

  • Failure to comply or obstructing HMRC (para 39):  £300.
  • Daily default penalties (para 40): up to £60 per day.
  • Increased daily penalties where default exceeds 30 days (para 49A): up to £1,000 per day.
  • Tax-related extreme default penalty, where HMRC suspect a loss of tax (para 50): as decided by the Upper Tribunal (UT).
  • Inaccurate information and documents (para 40A): up to £3,000.

Appeal

  • The taxpayer has a right of appeal against default and inaccuracy penalties on the basis that they have a reasonable excuse for their failure.
  • An appeal must be lodged to HMRC within 30 days of the penalty notice.

See Schedule 36 Information Notices (subscriber guide).

Tax cases

Tax case decisions on the validity of Information Notices, Third party notices, Penalties and appeals, see Schedule 36 Information Notices