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HMRC internal manual

Compliance Handbook

Penalties for Failure to Notify: Calculating the penalty: Potential Lost Revenue: Insurance premium tax, Aggregates levy, Climate change levy, Landfill tax, Air passenger duty

A person must notify us that they are liable to register or satisfy other obligations, see CH71300, for the purposes of

  • Insurance premium tax
  • Aggregates levy
  • Climate change levy
  • Landfill tax
  • Air passenger duty.

For these taxes and duties, the potential lost revenue resulting from a failure to notify is the amount of tax which the person would have been liable to for the period

  • starting from the date on which they were required to register and
  • ending on the date HMRC received notification or otherwise became aware of the person’s liability to be registered.


Quincy Quarries Ltd commences exploiting aggregate commercially on 1 January 2011 but fails to notify HMRC until 30 September 2012.

The PLR is the amount of levy due for the period from 1 January 2011 (the date Quincy Quarries Ltd is required to be registered) to 29 September 2012.


When you calculate the PLR for a person’s (P)’s failure to notify, you do not take into account any tax overpaid by another person because of P’s failure. The only exception to this is where that other person is allowed to adjust their tax liability by reference to P’s liability. There is an example of this at CH72640.