Income Tax (Earnings and Pensions) Act 2003 section 81J

Assessment of penalties

Section 81J sets out the rules for how HMRC must assess and notify penalties under the share scheme provisions, including the time limits for making assessments and the deadlines for paying penalties.

• HMRC must formally assess any penalty and notify the company, generally within 12 months of the company becoming liable for the penalty.
• 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 penalty liability arose.
• Penalties must be paid within 30 days of the penalty notice, or if an appeal is lodged, within 30 days of the appeal being determined or withdrawn.
• Penalties are enforceable as if they were corporation tax, or income tax for companies not within the charge to corporation tax.