Default Surcharge: Calculation and notification of the surcharge: Rates of surcharge
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
The maximum rate of surcharge is 15%.
The minimum amount of surcharge
- where a liability to surcharge is established no surcharge assessment will be issued if
- the amount calculated is less than £400 (or £200 for returns due before 31 December 2001), and
- it is calculated at the 2% or 5% rates
- at the 10% and 15% rates, the amount to be assessed will be the greater of
- the calculated amount, or
|Surcharge rate||Surcharge amount||Amount notified to trader|
Although the trader has incurred a liability to Surcharge of 5%, no surcharge assessmentis issued because the calculated surcharge amount is less than £400.
However, a Surcharge Liability Note Extension (SLNE) is issued and a further defaultwithin the surcharge period will incur a liability to Surcharge of 10%.
In this way, a trader can escalate to the 10% rate without having been surchargedpreviously. He will, however, have received one SLN and two SLNEs warning of theconsequences of further defaults.