MLR1PP15010 - Discounts for prompt payment of penalties

The discount detailed in this section only applies to:

  • Type 1 penalties for ASPs, EABs, LABs and TCSPs (scale charge penalties)
  • Type 2 penalties
  • Type 3 penalties

To encourage businesses to pay any penalties levied on them quickly, and to encourage them to swiftly move towards full compliance, HMRC will offer the following incentive:

  • If a business pays their penalty within 30 days of issue, there will be a 25% reduction upon the value of the final penalty falling due. (i.e. the ‘sum owed’ – after all other potential reductions)

  • For example, where a business is issued with a compliance penalty of £10,000 but pays it within 30 days, they will only have to pay £7,500.

This does not include:

  • Type 1 penalties for AMPs, HVDs and MSBs as these receive a different discount
  • Type 4 penalties (failure to provide information or premises access) as these are time sensitive penalties.

This does not include penalty administration charges. Whatever the penalty administration charge is, as detailed within the Penalty Notice, the business will have to pay that amount, even if the business pays within 30 days of the Notice being issued.

If a business requests for a review or appeal of the penalty being imposed, this does not pause the time, regarding early payments.