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HMRC internal manual

MLR1 Penalties Guidance

HM Revenue & Customs
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Penalties guidance: using the penalty reduction table

The percentage reduction we are prepared to allow will always be determined by the penalty reduction table at MLR1PP10100. There is also a simplified table for Registration penalties in MLR1PP10150 of this guidance.

For all compliance penalties the reductions will range from 20% to 70%.

The table provides a framework to ensure consistency in the way we reduce the maximum penalty and this will ensure that penalties are appropriate. Although the table is prescriptive in the reductions that are given, the individual circumstances of the breach must always be taken into account when evaluating the specific behaviours demonstrated by the business.