AWRS111200 | Calculating the penalty: calculating the penalty

From HM Revenue & Customs · Alcohol Wholesaler Registration Scheme

Please follow these steps when calculating a TWA penalty.

Step 1

Calculate the percentage for the quality of the disclosure following the guidance at AWRS110600 (a)

Step 2

Having established the behaviour and whether the disclosure was prompted or unprompted, identify

the maximum penalty (b)
the minimum penalty (c).

These are as follows:

Behaviour	Penalty range for unprompted disclosure	Penalty range for prompted disclosure
Deliberate and concealed	30% - 100%	50% - 100%
Deliberate but not concealed	20% - 70%	35% - 70%
Non-deliberate	10% - 30%	20% - 30%

Step 3

Then calculate the maximum disclosure reduction (d).

(d) = (b) - (c)

Step 4

Calculate the actual reduction percentage for disclosure (e) by multiplying the maximum disclosure reduction (d) by the percentage for the quality of the disclosure (a).

Actual reduction percentage for disclosure (e) = (d) x (a)

Step 5

Calculate the penalty percentage (f) by deducting the actual reduction percentage for disclosure (e) from the penalty maximum (b).

Penalty percentage to be charged (f) = (b) - (e)

Step 6

To arrive at the amount of the penalty to be charged (g) apply the penalty percentage (f) to the maximum amount for TWA penalty.

Penalty chargeable (g) = £10,000 x (f).