Introduction Assessment
26.Paragraph 11 sets out the mechanisms whereby HMRC can assess, notify and enforce penalties, which are to follow the same procedures as for assessments to tax.
27.Paragraphs 11(4) and (5) allow HMRC to make supplementary assessments where an earlier assessment was made by reference to an underestimate of the amount of tax or for PAYE and CIS penalties, if a taxpayer makes additional defaults in year.
28.Paragraph 12 sets the time limit by which an assessment of any penalty must be made.
29.Paragraph 12(1) states that the assessment must be made on or before the later of two dates. The first date is the last day of the period of two years beginning with the date specified in column 4 of the Table. The second date is the last day of the period of 12 months beginning with the end of the appeal period for the assessment of the amount of tax in respect of which the penalty is assessed, or if there is no such assessment the date on which the amount of tax is ascertained.