This is a freeview 'At a glance' guide to penatlies and Information Notices.

What penalties apply if you fail to comply with an Information Notice request by HMRC? What are your rights of appeal?

 Subscribers see Schedule 36 Information Notices (subscriber guide).

Failure to respond to an Information notice under Schedule 36 FA 2008 will lead to a tax penalty, 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

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

Useful guides on this topic

Sch 36 Information Notices
What is a Schedule 36 Information Notice? When can HMRC issue one? What rights does the taxpayer have when an information notice is issued?

Sch 36 third party notices
When can HMRC require a third party to provide information or produce a document in relation to a taxpayer? Who can appeal a notice? What rights does the taxpayer have?

How to appeal a tax penalty (subscriber version)
What are the steps in making an appeal? What should your appeal cover? What does recent case law say on this topic?


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