MLR1PP9300 - Penalties guidance: determinations of gross profit

If a business fails to co-operate with us in establishing the gross profit they will not benefit from the penalty cap and the uncapped total starting penalty will be used. This means that non-cooperation by the business is unlikely.

There will however be some circumstances where a business will not be able to obtain accurate details of the gross profit for reasons beyond its control. Under these circumstances a determination should be made based on the following:

• any Accounts that can be provided for a representative period in the current or previous accounting period
• earlier years Accounts adjusted for inflation or changes in the business