CH94250 - Penalties for VAT and Excise Wrongdoing: Calculating the penalty: Potential Lost Revenue: What is Potential Lost Revenue

»Ê¹ÚÌåÓýapp amount of potential lost revenue (PLR) for a VAT or excise wrongdoing is

  • the amount shown or included as VAT where a person makes an unauthorised issue of an invoice, or
  • the amount of excise duty that is due to HMRC as a result of the wrongdoing, or
  • for Landfill Tax wrongdoings, the amount of tax due on the taxable disposal.

Where you calculate the PLR for a person’s (P’s) VAT or excise wrongdoing, you do not take into account any VAT, excise duty or Landfill Tax overpaid by another person because of P’s wrongdoing. »Ê¹ÚÌåÓýapp only exception to this is where that other person is allowed to adjust their tax liability by reference to P’s liability.

See page CH94300 for examples.

FA08/SCH41/PARA8

FA08/SCH41/PARA9
FA08/SCH41/PARA10
VATA94/SCH11/PARA5
FA18/SCH12