Mitigation Framework: Why and when we should mitigate a penalty: When we should mitigate
Consideration must also be given to any mitigating factors which warrant a reduction in the amount of penalty. Evidence of mitigating factors can arise both before and after a liability to a penalty arises.
The aim of a penalty is of course to encourage compliance, therefore where a normally compliant trader makes a one off error a previously good record should be recognised.
If when checking a trader’s history it is clear that the error is out of character with the usual attention paid to VAT matters, then the penalty may qualify for some mitigation.