MLR1PP10150 - Penalty guidance: the simplified penalty reduction table for failure to notify penalties
The table below gives the fixed reduced penalties you must apply for non-deliberate failure to notify material changes or for significant inaccuracies in registration information.
| Unprompted Disclosure | Prompted Disclosure | Undisclosed Breach | |
|---|---|---|---|
| First Breach | Nil (100% reduction) | £500 (90% reduction) | £1500 (70% reduction) |
| Second Breach | £1000 (80% reduction) | £1500 (70% reduction) | £2500 (50% reduction) |
| Third Breach | £2000 (60% reduction) | £2500 (50% reduction) | £3500 (30% reduction) |
| Subsequent Breaches | £2000 (60% reduction) | £5000 (Nil reduction) | £5000 (Nil reduction) |
Unprompted Disclosure: A disclosure is unprompted if information about a breach is provided by the business and the person giving the information has no reason to believe that we have discovered the error. In practice this means an unprompted disclosure is made:
- voluntarily
- in writing
- before we contact a business by any means about any previous warning letters or penalties
- before we write to a business or send them a registration pack because we suspect they are trading illegally
- before we write to a business about arranging a Compliance Visit
- before we contact a business by any means, as part of a Compliance Intervention
Prompted disclosure: If information about a breach is provided by the business after any such contact above, it will only count as a prompted disclosure.
For example a Visiting Officer asks the business owner how many premises they operate and is told they have 6 but only 5 have been declared. This information has been discovered as a direct result of the Officers questions on the visit and has therefore been prompted.
Undisclosed Breach: If information about a breach is not provided by the business at all but has been discovered by us.
For example a Visiting Officer asks the business owner how many premises they operate and is told they have 6 but when the officer checks the records, they discover they actually have 8 premises.