SAOG19200 | What to do when there may have been a failure or inaccuracy: first referral to the Penalties Consistency Panel when there may have been a main duty failure or inaccurate certificate

Where a Customer Compliance Manager (CCM), the Mid-sized Business Customer Engagement Team (CET) or a Caseworker considers that there may be a potential main duty or inaccuracy penalty situation they must not discuss a potential penalty with the Senior Accounting Officer (SAO) or issue a penalty without going through the authorisation process.

It is important that a CCM, the CET or a Caseworker does not discuss these types of potential penalties with an SAO until the matter has been fully considered within HMRC according to the following steps.

They must first discuss their concerns, with

• Large Business - with the Deputy Director

• Mid-sized Business - with the Assistant Director who must consult with their Deputy Director (Operations).

The Deputy Director or Assistant Director will decide whether on the basis of current information, it appears that there has been a main duty failure or inaccurate certificate. If the Deputy Director/Assistant Director decide that this is the case, the CCM, CET or Caseworker must send a submission via the Deputy Director in Large Business or Assistant Director in Mid-sized Business to the Penalties Consistency Panel (‘the panel’), in accordance with existing Penalty Authorisation Guidance. The panel will direct the CCM’s, CET's or Caseworker's next action, see SAOG19300.

A template for submissions to the panel is available to all HMRC staff via the LB Operational Guidance Portal.

If the Deputy Director/Assistant Director decide that no further action should be taken on the case, a record of the reasons for this should be made and retained in the customer record.