Penalties for Failure to Notify: Calculating the penalty: Calculation process: Prompted disclosure calculation example - more than 12 months late
James has made a late notification having been prompted. His failure was non-deliberate. The notification was 15 months late. The PLR is £40,000.
The percentage for the quality of the disclosure (a) has been calculated as 70%.
The maximum penalty (b) is 30% and the minimum penalty (c) is 20%.
So the maximum disclosure reduction (d) is 30 - 20 = 10%.
The actual reduction percentage for disclosure (e) is 10 x 70% = 7%.
Penalty percentage to be charged (f) is 30% - 7% = 23%.
The penalty to be charged (g) is £40,000 x 23% = £9,200.