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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: penalties: abatement objectives

The objective of the abatement structure as set out in COG914090 is

  • to encourage and reward immediate disclosure and cooperation leading to speedy settlement
  • whilst at the same time recognising the seriousness of any offences.

The percentages below are shown in factsheet CC/FS19 (COG906060).

Abatement Amount
Disclosure COG914100 and COG914105  Up to 20% or 30% in exceptional circumstances
Cooperation COG914110 and COG914115  Up to 40%
Seriousness COG914120 and COG914125  Up to 40%

For example

  • an employer with serious offences but maximum disclosure and cooperation abatements
  • may have a lower penalty than
  • an uncooperative employer with less serious offences.