MLR1PP8810 - Penalties Guidance: Step 3(2): Calculating the additional starting penalty: Stage 1

The first stage is to establish if it is necessary to apply the additional scale charge. This will depend on the gross profit of the business in the preceding 12 months, irrespective of the number of clients. If the gross profit is less than £50,000, the maximum starting penalty will always be capped at £5,000 (10% of £50,000). See MLR1PP9150 

Under these circumstances there is no need to apply the scale charges and the total starting penalty will simply be the minimum penalty because there is no additional penalty.