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