# CH94050 - Penalties for VAT and Excise Wrongdoing: Calculating the penalty: Before calculating the penalty

To work out the penalty to be charged you first need to establish

• the underlying behaviour that gave rise to the wrongdoing, see CH93050
• the penalty period, see CH91300
• the Potential Lost Revenue (PLR), see CH94250
• whether the disclosure of the wrongdoing was unprompted or prompted, see CH94650, and
• the quality of disclosure, see CH94850.

For detailed guidance on how to calculate the penalty, see CH95550.