VCP11751 | Mitigation Framework: Simple examples of mitigation: Mitigation examples

From HM Revenue & Customs · VAT Civil Penalties

Mitigation example	Amount
True Voluntary disclosure (late registration through own volition) accompanied by full quantification of arrears	50% mitigation
Other factors: evidence of efforts made to seek advice	10% mitigation
Total mitigation calculated	60% mitigation
Penalty calculated at 5% rate of £15k arrears	£750
Mitigation of 60% reduces penalty to	£300

Mitigation example	Amount
Late registration identified by the Department (SET activity)	No mitigation
Full quantification of arrears by trader within say 30 days	25% mitigation
Compassionate grounds	20% mitigation
Total mitigation calculated	45%
Penalty calculated at 10% rate of £25k arrears	£2500
Mitigation of 45% reduces penalty to	£1375

Mitigation example	Amount
Error identified by Department	No mitigation
Partial co-operation and quantification of arrears	25% mitigation
Other factors such as computer or software errors	15% mitigation
Total mitigation calculated	40%
Penalty calculated at 15% of £20k arrears	£3000
Mitigation of 40% reduces penalty to	£1800