CH403355 - Charging penalties: Calculating penalties: Potential Lost Revenue (PLR): obtaining the PLR in VAT Mainframe cases: pre-payment cases
You should record all your actions in the Document Notes within EF.
When a pre-cred results in an adjustment, notify the details to Credibility Operations via EF. A pre-cred is a type 60 penalty.
When the dummy return is input into the VMF it will trigger a D2211 report containing the PLR and a penalty amount. The PLR will be presented as a single figure, being the difference between the amount originally claimed and the amended amount due or repayable.
The PPR will be calculated at 30%. For pre-creds only, the VMF assumes default values: failure to take reasonable care - prompted.
The D2211 should be passed to you to decide the behaviour(s) and the reductions for disclosure.
You should consider whether the PLR resulted from a single inaccuracy or multiple inaccuracies. If there are multiple inaccuracy and behaviour types apportion the single PLR figure shown on the D2211 accordingly.
Input details of the person and the inaccuracies into NPPS. Where there is a single inaccuracy, input the PLR figure directly from the D2211. Where there are multiple inaccuracies and behaviour types apportion the PLR shown on the D2211, entering each figure into NPPS.