TFC61100 | Penalties: time limits to make an assessment and pay a penalty

Time limits to make an assessment of a penalty

Childcare Payments Act 2014, section 47(2) and (3)

HMRC may not make an assessment of a penalty:

• 12 months after HMRC believed or had reasonable grounds for believing that the person was liable to a penalty

• after 4 years beginning with the day on which the person became liable to a penalty (in a case where the person became liable to a penalty because of their dishonesty, 20 years beginning with that day).

Time limits to pay a penalty

Childcare Payments Act 2014, section 47(4)

A person must pay a penalty as a result of an assessment under this section:

• within 30 days, if they do not apply for a review of the penalty

• within 30 days of the end of the review, if they do not appeal against its conclusion

• if the person has appealed against the penalty, on the day on which the appeal is determined or withdrawn