SolvedCH177270 | Sanctionable conduct by tax advisers: file access notice: penalties for failing to comply: overview
From HM Revenue & Customs · Compliance Handbook
A person is liable to penalties if they fail to comply with a file access notice, see .
A file access notice can be issued to persons who are not tax advisers, see . This means that penalties for failing to comply with a file access notice can also be issued to persons who are not tax advisers.
A person is liable to an initial penalty of £300 if they fail to comply with a file access notice, see . Failure to comply with a notice means that the person did not provide the required documents within the timeframe specified in the notice.
Failure to comply with a file access notice also includes concealing, destroying or otherwise disposing of a required document, or arranging for the required document to be concealed, destroyed or disposed of.
If the failure to comply continues after the initial £300 penalty has been issued to the person, then daily penalties of up to £60 per day can be charged for as long as the failure continues, see .
If the failure to comply continues for more than 30 days from the point at which the first £60 daily penalty was issued, then we may make an application to the tribunal to increase the daily penalty amount up to £1,000.
We will not charge initial or daily penalties if we allow the person more time to comply with the file access notice and they comply with the file access notice within that additional time, see .
A person will not be liable to initial or daily penalties if that person has a reasonable excuse for not complying with the file access notice, see . Initial and daily penalties cannot be reduced due to the person making a disclosure, see .
A person is liable to a penalty of up to £3,000 if they provide a document that contains an inaccuracy in response to a file access notice, where that inaccuracy is deliberate or careless. A penalty of up to £3,000 may be issued for each inaccuracy.