MLR1PP14860 - Penalties guidance: text version of flowchart of how to calculate registration penalties
Flowchart: How to calculate registration penalties
Text Version
Failure to register breach
Deliberate/persistent failure to register
- Issue a penalty notice for £1000 advising this will be reduced to £500 plus unpaid fees, if acceptable registration application received within 30 days
- If acceptable registration application received within 30 days issue a revised penalty of £500 plus unpaid fees and register the business
- If acceptable registration application not received within 30 days from issuing the penalty notice, issue penalty for £1000
- If acceptable registration application received within 30 days from issuing the £1000 penalty register the business
- If acceptable registration application still not received after 30 days from issuing the £1000 penalty issue further penalties of £5,000for each month
- unpaid fees should be paid from date the business started trading
- If the business still does not register then consider whether there is enough evidence of the business trading while being unregistered to refer the case for criminal investigation.
Non - Deliberate/persistent failure to register
- If the breach has been identified by an unprompted disclosure by the business issue a penalty for £100 plus the amount of unpaid fees
- If the breach has not been identified by an unprompted disclosure by the business issue a penalty for £500 plus the amount of unpaid fees
Failure to notify changes breach
- Charge the fixed starting penalty of £5000
- If a reduction is appropriate and the failure to notify is a deliberate breach charge the reduced penalty as per the Standard table at MLR1PP10100
- If a reduction is appropriate and the failure to notify is not a deliberate breach charge the reduced penalty as per the Simplified table at MLR1PP10150