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HMRC internal manual

Compliance Handbook

Charging penalties: Calculating penalties: Potential Lost Revenue (PLR): obtaining the PLR in VAT Mainframe cases: reconciling the D2211 and NPPS

Processing the VAT641 will generate a D2211 which will provide penalty details as calculated by the VMF.

Normally the PLR is the figure given on the D2211, however there are exceptions, for example, in the case of divisional registrations, where a single legal entity may have separate VAT registrations for each of its divisions. In this case a D2211 for an individual division should be considered in the context of the whole legal entity and that entity’s PLR and penalty liability, so the PLR may have to be calculated manually.

On receipt of the D2211 retrieve the partly completed case from NPPS and check that the PLR for each inaccuracy is entered correctly into NPPS.

Check that there are no discrepancies between the penalty amount generated by the VMF as shown on the D2211 and that produced by inputting the correct PLR in NPPS. This will validate that you have entered data correctly.