VCP10944 | Calculation and notification of the penalty: Penalty rates

The penalty is applied on a daily rate basis and the penalty rate increases with each further default.

First default attracts a penalty of £5 per day.

Second default attracts a penalty of £10 per day.

Third and subsequent defaults attract a penalty of £15 per day.

The penalty can be applied for a maximum of 100 days.

There is a minimum penalty of £50.