Wrongful doing penalties in the UK, which are also known as wrongdoings, pertain to offence penalties issued by the HMRC. The term wrongdoing is specific to not paying the Crown funds that are owed to it by individuals or businesses. Therefore, these funds can include VAT sums or Excise Duty. Thus, this article discusses wrongdoing penalties and what they can mean to individuals and businesses.

How Wrongful Doing Penalties Are Calculated

Wrongful doing penalties in the UK are calculated by what is known as potential lost revenue (PLR). PLR is the amount that is accumulated by acts of wrongful doing. The officer handling your case or your solicitor can better explain how this amount is calculated.

Therefore, you are expected to pay a percentage of the PLR as your penalty for your offence. Some factors affect the percentage you pay back. These factors include the following.

  • Your behaviour toward the offence, i.e., deliberate and concealed, deliberate, or non-deliberate, with the non-deliberate contributing the least to the total percentage
  • How forthcoming you are with disclosing details of your offences, i.e., with or without prompts
  • Offering more information about the activities involved in your offence to help reduce the percentage
  • Other reductions considered by the governing body

For a more in-depth discussion on these steps, review this resource provided by the UK government. You can also contest the charges. If you do not, then the HMRC will consider your silence as complete acceptance of said charges. In turn, you will receive no reductions in your penalties.

In most cases, the extent of the penalties stops at monetary fines. However, in some extreme cases, your case may also have criminal implications. As a result, the HMRC may choose to treat your case as a criminal one.

Can You Also Be Personally Charged If Your Company Is Being Charged with Wrongful Doing?

Yes, you can. It’s important to note that directors or partners of businesses may also be charged with wrongful doing if their company has been charged with such a case. In such situations, you will need a legal team to develop defence strategies for your company and you personally.

Final Words

Wrongful doing penalties in the UK may not be as severe as otherwise if you tackle your case with legal action early. A trained and experienced solicitor can help guide you through your case and prepare a defence strategy that can help minimize the penalties as much as possible. Seeking legal action early is also crucial because you may also be able to remove the charges altogether under specific circumstances, such as not performing the wrongful doing deliberately or having a reasonable excuse for your actions. Thus, make sure that you communicate all of the details with your  lawyer early so that you can approach your case appropriately.