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HMRC internal manual

Compliance Handbook

Penalties for VAT and Excise Wrongdoing: How to process a penalty: Supplementary penalties

Where we have assessed a penalty but the potential lost revenue (PLR) has been underestimated, we may assess a supplementary penalty based on the additional PLR. This allows you to increase the original penalty.

For example

We assessed a penalty for a number of VAT or excise wrongdoings. In adding them up to get to the total PLR we wrongly missed an amount out of the PLR. The wrong figure is discovered after three weeks. We can make a further assessment of the omitted PLR and the related penalty.

The time limits for issuing a supplementary penalty assessment are as set out in CH96300 but run from the date of the supplementary assessment to recover the further PLR or the date that the further amount of tax or duty unpaid is ascertained if there is no such assessment.