Penalties for Inaccuracies: Calculating the Penalty: Calculation Process: Prompted disclosure calculation example
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James has made a prompted disclosure of a careless inaccuracy. The PLR is £12,000.
The percentage for the quality of the disclosure (a) has been calculated as 60%.
The maximum penalty (b) is 30% and the minimum penalty (c) is 15%.
So the maximum disclosure reduction (d) is 30 – 15 = 15
The actual reduction percentage for disclosure (e) is 15 x 60% = 9%
Penalty percentage to be charged (f) is 30% – 9% = 21%
The penalty to be charged (g) is £12,000 x 21% = £2,520