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HMRC internal manual

Alcohol Wholesaler Registration Scheme

From
HM Revenue & Customs
Updated
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Calculating the penalty: calculating the penalty

Please follow these steps when calculating a TWA penalty.

Step 1

Calculate the percentage for the quality of the disclosure following the guidance at AWRS110600 (a)

Step 2

Having established the behaviour and whether the disclosure was prompted or unprompted, identify

  • the maximum penalty (b)
  • the minimum penalty (c).

These are as follows:

Behaviour Penalty range for unprompted disclosure Penalty range for prompted disclosure
     
Deliberate and concealed 30% - 100% 50% - 100%
Deliberate but not concealed 20% - 70% 35% - 70%
Non-deliberate 10%- 30% 20% - 30%

Step 3

Then calculate the maximum disclosure reduction (d).

(d) = (b) - (c)

Step 4

Calculate the actual reduction percentage for disclosure (e) by multiplying the maximum disclosure reduction (d) by the percentage for the quality of the disclosure (a).

Actual reduction percentage for disclosure (e) = (d) x (a)

Step 5

Calculate the penalty percentage (f) by deducting the actual reduction percentage for disclosure (e) from the penalty maximum (b).

Penalty percentage to be charged (f) = (b) - (e)

Step 6

To arrive at the amount of the penalty to be charged (g) apply the penalty percentage (f) to the maximum amount for TWA penalty.

Penalty chargeable (g) = £10,000 x (f).