Penalties guidance: how to calculate registration penalties
The basic steps for calculating registration penalties for failure to notify HMRC of change of details are listed below:
- Step 1 - The starting penalty is set at £5,000 for each breach.
- Step 2 - Where appropriate, this starting penalty should be reduced to the simplified behaviour based reduced penalty sums which can be found at MLR1PP10150. Where the failure is deliberate the standard reductions table at MLR1PP10100 should be applied.
The basic steps for calculating late registration penalties (Regulations 26 and 33) are calculated as follows:
- Step 1 - Unprompted Disclosure: £100 fixed penalty plus any unpaid fees by the business
- Step 2 - Prompted Disclosure: £500 fixed penalty plus any unpaid fees by the business
EABs were required to register with the Office of Fair Trading (OFT) from 31 July 2009 and had to register, at the latest, by 31 January 2010. Unpaid fees will be payable from the later date or from the date trading began, if after 31 January 2010.
HMRC became the supervisor of EABs from 1 April 2014, OFT fees will apply before this date.