IEIM905330 | Penalty Reductions for Per Seller Record Penalties

From HM Revenue & Customs · International Exchange of Information Manual

A penalty of up to £100 per seller record may be charged in the following circumstances:

Failure to apply due diligence procedures as set out in the regulations (see IEIM905160)
Incomplete or inaccurate reports (see IEIM905170)

Penalty amounts will be assessed by considering the behaviour of the RPO and the frequency of the failures. Where the behaviour that led to the failure was deliberate, penalties will be higher than if the behaviour was careless. Subsequent failures will lead to increased penalty levels.

When assessing penalty amounts, HMRC will consider all relevant facts and circumstances. The following penalty reduction factors will also be considered:

Reduction Factor	Details
Remedial Action	Was the error corrected within a reasonable period? HMRC would normally consider a period of thirty days to be reasonable, particularly for simple corrections. However, for more complex cases, HMRC may accept that a period of longer than thirty days is still reasonable depending on the particular facts and circumstances.
Co-operation	How co-operative has the platform operator been in trying to resolve any issues with their submission?
Giving Access	Has the platform operator given HMRC the information they need?
Nature of Disclosure	Did the platform operator tell HMRC that there were problems, unprompted?
Proportion of Errors	What proportion of the records contain incorrect or inaccurate information? HMRC would normally consider a greater reduction was due where the inaccuracy, omission or failure relates to 10% or fewer of all seller records.