SM07250 | Special Measures: Representations: Notice issued following expiration of a previous notice

HMRC can place a large business (SM02000) into Special Measures after a Warning Notice, Special Measures Notice, or Confirmation Notice has expired.

Before issuing a new Special Measures or Confirmation Notice in this circumstance, HMRC must consider any representations made by the business within 8 months of the previous notice’s expiry.

Example 1 – Valid representations made by a large business prior to a new notice being issued

HMRC issues a Special Measures Notice to a large business on 1 January 2026. No Confirmation Notice is issued so the notice expires on 2 April 2028. On 31 July 2028, HMRC identifies unco-operative behaviour within 6-months of expiry, allowing a new Special Measures Notice to be issued. The business submits representations on 15 November 2028, within 8-months of expiry. These are valid, and HMRC must consider them before issuing a new notice.

Example 2 – Invalid representations made by a large business prior to a new Notice being issued.

HMRC issues a Special Measures Notice to a large business on 1 January 2026. No Confirmation Notice is issued, so the notice expires on 2 April 2028. On 31 July 2028, HMRC identifies unco-operative behaviour within 6-months of expiry, allowing a new Special Measures Notice to be issued. The business submits representations on 10 December 2028, more than 8-months after expiry. These are invalid, and HMRC is not required to consider them before issuing a new notice.

FA2016/SC19/PT3/PARA45(2)(a)(i)-(ii)