CH82120 - Calculating the penalty: Amount of Penalty: Introduction
This guidance applies to returns and documents with a
filing date on or after 1 April 2009 where the return covers a tax
period beginning on or after 1 April 2008 seeCH81011for full details.
The amount of the penalty is based on the Potential Lost
Revenue (PLR), see
CH82160. You should work out the amount
of the penalty by applying an appropriate percentage to the PLR
depending on whether the inaccuracy was
- careless, see CH81130
- deliberate but not concealed, see CH81150, or
- deliberate and concealed, see CH81160.
Where there has been an under-assessment and the person did not
tell you about it, see
CH81170.
Where the person has discovered an inaccuracy in a return and
does not take reasonable steps to tell you about it, the inaccuracy
will treated as careless even if was not careless at the time it
was made, see
CH81080.
The maximum penalty due is
| Reason for penalty | Type of inaccuracy | Maximum penalty payable |
| Giving an inaccurate document | Careless | 30% of PLR |
| Giving an inaccurate document | Deliberate not concealed | 70% of PLR |
| Giving an inaccurate document | Deliberate and concealed | 100% of PLR |
| Inaccuracy discovered later but no reasonable steps taken to tell you | Treated as careless | 30% of PLR |
| Understated assessment not notified | N/A | 30% of PLR |
You may reduce the penalty depending on the quality of the
disclosure, see
CH82400. The reduction may be restricted
to a minimum amount, see
CH82470.
A list of the relevant documents is at
CH81060.
