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HMRC internal manual

MLR1 Penalties Guidance

Penalties guidance: TCSPs/ASPs/EABs: calculation the additional penalty

For ASPs/TCSPs/EABs the third step when calculating the additional penalty is a simple matter of applying the scale charge to the correct number of clients. The scale charge tables are in MLR1PP9000 

Calculating the correct number of clients is however more complex and certain stages must be followed to ensure this is as accurate as possible. It is up to the business to provide any specific details which are required by us; otherwise we will make a determination of these figures.

The first stage is to establish the number of relevant clients during the relevant period following the guidance in MLR1PP8850 

The second stage is to establish the number of relevant clients who were subject to the breaches. In other words these are the relevant clients who were not monitored as a result of the breaches.

This is the number of clients subject to the scale charge. This is explained fully in MLR1PP8950 of this guidance. It is important to note that the scale charge must not be applied to the total number of relevant clients which may include some clients to whom the Regulations were correctly applied.