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HMRC internal manual

Compliance Handbook

CH412100 - Charging penalties: accounting for penalties: VAT Mainframe

Use the VAT292 in NPPS to capture the penalty to the person’s account in ETMP. It is sent to the VAT292 keying team who will create the penalty charge and confirm this via NPPS.

The VAT292 has a column in which to enter penalty codes for Schedule 24 and Schedule 41 penalties, which are:

  • inaccuracy penalties corrected via a VAT641/642 - Penalty Code 58 
  • under-assessment penalties (late return and higher liability) - Penalty Code 59 
  • inaccuracies in returns subject to pre-payment credibility amendment - Penalty Code 60 
  • VAT Schedule 41 failure to notify penalties - Penalty Code 61
  • VAT Wrongdoing - Penalty Code 63