Calculating penalties

Customs civil penalties (CCPs) for regulatory breaches are stepped. The minimum is £250 and the maximum for further breaches is either £1,000, or £2,500 for more significant breaches as set out in the statutory schedules. If there is a reasonable excuse (such as computer breakdown or illness) there will be no liability to a penalty. Notice 301 details this but all cases are judged individually, and penalties can be reduced for certain mitigating circumstances

Customs civil evasion penalties (CCEPs) are worked out as a percentage of the duty traders owe. The penalty is equal to the duty dishonestly evaded or sought to be evaded. If a trader agrees what they owe, the penalty may be less than the maximum.Excise PenaltiesExcise civil penalties (ECPs) for regulatory contraventions are categorised as follows:the fixed penalty is £250

The geared penalty is charged as a fixed percentage of the duty involved subject to a minimum amount of £250the daily penalty is a fixed sum of £20 but can only be imposed if either of the above has already been imposedthe breach of walking possession penalty is 50 per cent of the duty or penalty that gave rise to the distress action


HMRC have no power to reduce the penalty amount or rates. However if there is a reasonable excuse, such as compassionate circumstances or computer breakdown, there will be no liability to a penalty. HMRC's Public Notice 209 has more detail on this subject but all cases are judged individ.