Mitigation Framework: Why and when we should mitigate a penalty: How the infringement occurred
|How the infringement occurred||Maximum of 50%|
|Compassionate grounds (where the circumstances are insufficient to warrant a reasonable excuse) such as|
- Unforeseen serious illness of the person responsible for completing the VAT returns (including third party such as professional advisor).
Death of a close relative of the person responsible for completing the VAT returns. from 20% - 50% Other unforeseen and relevant events which nevertheless you do not consider provide a reasonable excuse on their own but are supported by evidence such as
- Computer or software errors.
- Flood, fire or other damage to premises.
- Theft or break in.
- Pressure of work i.e. exceptional and significant increase in workloads not in keeping with normal work fluctuations.
- Staff problems i.e. where the person responsible for completing the VAT return leaves at short notice.
|clerical errors particularly in complex circumstances where management controls are in place but have failed to spot the error.||from 10% - 50%|
|Complexity of liability in relation to the size of the business and frequency of transaction.||from 10% - 50%|