MLR1PP8110 - Penalties Guidance: Basic steps for calculating registration penalties

The basic steps for calculating registration penalties for failure to notify HMRC of change of details are listed below:

Step 1 - The starting penalty is set at £5,000 for each breach.

Step 2 - The standard behaviour based percentage reductions should be applied to the starting penalty to arrive at the final penalty figure. A simplified penalty reduction matrix for failure to notify breaches can be found in MLR1PP10150 

To view the full range of penalty reductions to the £5,000 starting penalty. See penalty reductions failure to notify HMRC of a change of details MLR1PP14700

The basic steps for calculating late registration penalties (Regulation 26) (Regulation 33) are calculated as follows:

Step 1 - Unprompted Disclosure: £100 fixed penalty plus any unpaid fees by the business

Step 2 - Prompted Disclosure: £500 fixed penalty plus any unpaid fees by the business

An additional £500 penalty should also be considered where further reminders and chase up action is needed to obtain registration information. Where deliberate non-registration is identified following a compliance visit a case conference with MLR Policy Team should be considered to establish whether;

• An additional penalty is appropriate for non compliance with the regulations, or
• Referral to criminal investigation with a view to prosecute for non compliance with the regulations