​Schedule 36 Notices

The person who receives the notice can appeal against the whole notice or any part of the notice, however, there is no right of appeal against

• a requirement to provide information or produce any document that is part of the person’s statutory records,
• a notice or any requirement that requires only statutory records of any person relating to
• the supply of goods or services, or
• the acquisition or importation of goods from an EU member state, or
• the importation of goods from outside the member states in the course of carrying on a business, or
• a notice or any requirement approved by the tribunal. This is because the independent approval safeguards the person’s rights.
  
  

For an appeal to be valid it must:

• be in writing
• reach HMRC within 30 days of the date on which the information notice was received
• be addressed to the officer of HMRC who gave the information notice, and state the grounds of appeal.

Where information and/or documents requested by HMRC have not been produced HMRC can charge an initial penalty of £300 followed by daily penalties of up to £60 a day for every day after the date the initial penalty is assessed until the information or documents are provided.

No penalty will be charged if the person has a reasonable excuse for failing to comply with the notice.  HMRC consider a reasonable excuse to be something that stops a person from meeting a tax obligation despite them having taken reasonable care to meet that obligation. It is necessary to consider what a reasonable person, who wanted to meet their obligation would have done in the same circumstances and decide if the action of the person met that standard as outlined by Judge Medd in The Clean Car Company (LON/90/138X).

A person can appeal to the tribunal against

• the imposition of an initial or daily penalty, and
• the amount of the initial penalty (if this is assessed in an incorrect amount) or the amount of the daily penalty, and
• the imposition of a penalty for providing inaccurate information or producing a document that contains an inaccuracy in response to an information notice, and
• the amount of the inaccuracy penalty.
  
  

An appeal must:

• be addressed to HMRC in writing
• reach HMRC within 30 days beginning with the date on which the penalty assessment was issued, and state the grounds of appeal.

It is important to recognise the seriousness of a notice under Schedule 36 Finance Act 2008 and should you be unfortunate enough to receive one you should take action without delay. 

Qdos Contractor’s Tax Consultancy team specialise in assisting individuals and businesses that are under enquiry and/or are in receipt of one of these notices.

For further information and how we can assist you with issues surrounding tax enquiries, please contact [email protected]