Penalties for Failure to Notify: Calculating the penalty: Calculation process: Prompted disclosure calculation example - less than 12 months late
James has made a late notification having been prompted. His failure was non-deliberate. The notification was 10 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 10%.
So the maximum disclosure reduction (d) is 30 - 10 = 20%.
The actual reduction percentage for disclosure (e) is 20 x 70% = 14%.
Penalty percentage to be charged (f) is 30% - 14% = 16%.
The penalty to be charged (g) is £40,000 x 16% = £6,400.