IEIM905330 - Penalty Reductions for Per Seller Record Penalties

A penalty of up to £100 per seller record may be charged in the following circumstances:

  • Failure to apply due diligence procedures as set out in the regulations (see IEIM905160)
  • Incomplete or inaccurate reports (see IEIM905170)

No penalty will apply if it is assessed that the Reporting Platform Operator (RPO) has a reasonable excuse.

Penalty amounts will be assessed by considering the behaviour of the RPO and the frequency of the failures. Where the behaviour that led to the failure was deliberate, penalties will be higher than if the behaviour was careless. Subsequent failures will lead to increased penalty levels.

The following penalty reduction factors will also be considered:

Reduction Factor Details
Remedial Action Was the error corrected within a reasonable period?

HMRC would normally consider a period of thirty days to be reasonable, particularly for simple corrections. However, for more complex cases, HMRC may accept that a period of longer than thirty days is still reasonable depending on the particular facts and circumstances.
Co-operation How co-operative has the platform operator been in trying to resolve any issues with their submission?
Giving Access Has the platform operator given HMRC the information they need?
Nature of Disclosure Did the platform operator tell HMRC that there were problems, unprompted?
Proportion of Errors What proportion of the records contain incorrect or inaccurate information?

HMRC would normally consider a greater reduction was due where the inaccuracy, omission or failure relates to 10% or fewer of all seller records.