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HMRC internal manual

Compliance Handbook

HM Revenue & Customs
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Penalties for Inaccuracies: Calculating the penalty: Amount of Penalty - before calculating a penalty

You must check the date from which these rules apply for the tax or duty you are dealing with. See CH81011 for full details.

To work out the penalty to be charged you will need to establish

  • the underlying behaviour that gave rise to the inaccuracy, see CH81100
  • whether the inaccuracy was due to the deliberate behaviour of another person, see CH81165
  • the Potential Lost Revenue (PLR), seeCH82150
  • whether the disclosure was prompted or unprompted, see CH82420
  • whether the inaccuracy involves an offshore matter and the tax at stake is income tax or capital gains tax, see CH82480+, and
  • the quality of disclosure, see CH82430.

For detailed guidance on how to calculate the penalty, see CH82500.