188ÌåÓý

You may need to amend a penalty determination when an appeal has been settled. You should make the amendment using form 397 which is available through Excel / SEES / Forms and Letters / Compliance. Form 397 is very similar to form 394 and you should complete it following the instructions in EM5252 and EM5253.

If you are amending a penalty to nil, show the details of the penalty exactly as in the original determination. In a determination originally made under

• EM5252 show any revised figures of Tax/Tax Difference and NIC/NIC Difference. The penalty should be shown as â€�0â€�. The template will not allow you to enter the word ‘Nilâ€�.
• EM5253 enter â€�0â€� in the Total Penalty Payable (if you do not wish to use the Tax and NIC Table) box. The template will not allow you to enter the word ‘Nilâ€�.

Where, exceptionally, the tribunal has determined a penalty charge in a figure that includes an amount of pence, ignore the pence when completing the 397 form - for example, a penalty of £7.50 per day for 31 days should be shown as £232, not £232.50.

Issue the penalty determination notice with a covering letter to the taxpayer. Your letter should explain

• that you are enclosing a formal notice amending a penalty
• how any penalty that is due should be paid. (EM5254 explains what action you need to take)
• that if it is an SA penalty, interest will be charged if any amount due is paid late
• any other points or issues that are outstanding
• you should also include a copy of factsheet HMRC1 â€� ‘HMRC decisions - what to do if you disagreeâ€�.

If you have not already done so, you should also explain

• the facts which you believe give rise to the amended penalty
• how we calculated the amended penalty.

A copy should be sent to an agent (if acting) with a covering letter.

Note: The repayment of a penalty does not attract repayment supplement.