Income Tax (Earnings and Pensions) Act 2003 section 28J

Assessment of penalties

Section 28J sets out how HMRC must assess and notify penalties against a scheme organiser, including the time limits for making assessments, payment deadlines, and enforcement provisions.

• HMRC must assess the penalty and notify the scheme organiser, generally within 12 months of the date the liability arises.
• For penalties relating to inaccuracies, the assessment must be made within 12 months of HMRC becoming aware of the inaccuracy and no later than 6 years after the liability arose.
• The penalty must be paid within 30 days of the assessment notice, or within 30 days of an appeal being determined or withdrawn.
• The penalty can be enforced as if it were corporation tax, or income tax if the scheme organiser is not within the charge to corporation tax.