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HMRC internal manual

VAT Civil Penalties

From
HM Revenue & Customs
Updated
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Mitigation Framework: Why and when we should mitigate a penalty: Degree of co-operation in identifying and quantifying errors and other factors (misdeclarations)

Degree of co-operation in identifying and quantifying the error (misdeclarations). maximum of 50%
   
Full co-operation and quantification. up to 50%
Partial co-operation and quantification. up to 25%
Alleged full quantification that later turns out to be partial but the reason was unintentional. up to 10%
Supplying information promptly and answering questions accurately to allow officers to quantify the under-declaration. up to 10%
Other actions which result in a saving of Departmental time and resources. up to 10%
Other Factors. maximum of 50%
Published guidance is unclear or not up to date. up to 40%
Evidence of efforts made to seek advice. up to 10%
Evidence of steps taken to correct systems in order to prevent similar errors in future. from 5% - 25%
Compliance history of trader over the last 3 registered years has been good. up to 25%