VCP11751 - Mitigation Framework: Simple examples of mitigation: Mitigation examples
Late Registration
| 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 |
Late Registration
| 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 |
Misdeclaration
| 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 |