Section 40J — Income Tax (Earnings and Pensions) Act 2003: Assessment of penalties

Assessment of penalties 40J 1 This paragraph applies if the scheme organiser is liable for a penalty under this Part.

2 HMRC must assess the penalty and notify the scheme organiser of the assessment.

3 Subject to sub-paragraphs (4) and (5), the assessment must be made no later than 12 months after the date on which the scheme organiser becomes liable for the penalty.

4 In the case of a penalty under paragraph 40E(1)(b), the assessment must be made no later than—

a 12 months after the date on which HMRC become aware of the inaccuracy, and b 6 years after the date on which the scheme organiser becomes liable for the penalty.

5 In the case of a penalty under paragraph 40H(2)(b) or 40I(2)(a) or (7)(b) where notice of appeal is given under paragraph 40K(2) or (3), the assessment must be made no later than 12 months after the date on which the appeal is determined or withdrawn.

6 A penalty payable under this Part must be paid—

a no later than 30 days after the date on which the notice under sub-paragraph (2) is given to the scheme organiser, or b if notice of appeal is given against the penalty under paragraph 40K(1) or (4), no later than 30 days after the date on which the appeal is determined or withdrawn.

7 The penalty may be enforced as if it were corporation tax or, if the scheme organiser is not within the charge to corporation tax, income tax charged in an assessment and due and payable.

8 Sections 100 to 103 of TMA 1970 do not apply to a penalty under this Part.