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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Penalties for VAT and Excise Wrongdoing: Calculating the penalty: Potential Lost Revenue: What is Potential Lost Revenue

The amount of potential lost revenue (PLR) for a VAT or excise wrongdoing is

  • the amount shown or included as VAT where a person makes an unauthorised issue of an invoice, or
  • the amount of excise duty that is due to HMRC as a result of the wrongdoing.

Where you calculate the PLR for a person’s (P’s) VAT or excise wrongdoing, you do not take into account any VAT or excise duty overpaid by another person because of P’s wrongdoing. The only exception to this is where that other person is allowed to adjust their tax liability by reference to P’s liability.

See page CH94300 for examples.

FA08/SCH41/PARA8

FA08/SCH41/PARA9

FA08/SCH41/PARA10

VATA94/SCH11/PARA5