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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: how to issue compliance penalties: quick guide


  • issue the pre-penalty notice and calculation statement (once authorised by Countersigning Officer)
  • BF for 30 days
  • issue the penalty notice and any revised calculation statement following acceptable comments. (Once authorised by Countersigning Officer)
  • advise the Registration Team, who is responsible for input action to DTR for any penalties. Send them a copy of the penalty notice, penalty calculation statement, and the input form
  • monitor and review any trader’s reply to the penalty notice, and act accordingly
  • if there is no Review request or Appeal, update businesses folder and arrange a follow up visit (within preferably 4 - 6 months)
  • update the RTT about the outcome

Points to consider:

  • has a reply been received
  • is there a reasonable excuse
  • can we accept any other comments made by the business
  • do we need further details
  • do we need to re-calculate or cancel the penalty