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HMRC internal manual

Compliance Handbook

Penalties for Failure to Notify: Calculating the penalty: Potential Lost Revenue: What is Potential Lost Revenue

The amount of penalty is calculated by applying an appropriate percentage to the potential lost revenue (PLR).

The PLR is calculated in various ways depending on the nature of the relevant obligation, see CH71300, to which the failure applies.

Follow the links below for detailed guidance on calculating the PLR for the following obligations.

Tax Obligation to… Link
Income Tax    
Capital Gains Tax …give notice of chargeability CH72700  
  Corporation Tax …give notice of chargeability. CH72720
  VAT …notify liability to be registered including  

distance selling

VAT acquisitions

relevant supplies  CH72740  
  VAT …notify

a material change in the nature of supplies made by a person previously exempted from registration.

a material alteration in the proportion of zero rated supplies made by a person previously exempted from registration,

an acquisition made by a person exempted from registration.  CH72760    
  VAT …notify the acquisition of excise goods or new means of transport from another EU member state (non-taxable persons) CH72780
  Insurance Premium Tax …notify  

liability to be registered

intention to receive premiums in the course of a taxable business.  CH72800
  Aggregates Levy

Climate Change Levy

Landfill Tax …notify

liability to register in respect of taxable supplies or activities

an intention to carry out such activities or make such supplies.  CH72800    
  Air Passenger Duty …notify liability to register to operate chargeable aircraft. CH72800
  Alcoholic Liquor Duty    

Tobacco Products Duty

Hydrocarbon Oil Duty

General Betting Duty

Pool Betting Duty

Bingo Duty

Lottery Duty

Gaming Duty

Remote Gaming Duty

Amusement Machine Licence Duty …register, notify, licence or other obligations appropriate to the particular duty. CH72820  
  Machine games duty …notify liability to register by a person able to register at least14 days before dutiable machines are made available for play. CH72800