Income Tax (Earnings and Pensions) Act 2003 section 421JE

Assessment of penalties

Section 421JE sets out the rules for how HMRC must assess and enforce penalties for late or incorrect employment-related securities returns.

• HMRC must formally assess any penalty and notify the person concerned, generally within 12 months of the liability arising
• For penalties relating to inaccurate information, the assessment deadline extends to 12 months after HMRC discovers the inaccuracy, subject to an overall six-year backstop
• Penalties must be paid within 30 days of the assessment notice, or within 30 days of an appeal being determined or withdrawn
• Penalties are enforceable as though they were income tax (or corporation tax for companies), and the general penalty provisions in the Taxes Management Act 1970 do not apply