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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Assessing Time Limits: VAT Limitations: Penalty, interest and default surcharge assessments

The time limits described at CH51300 have limitations if you are assessing penalties, interest or default surcharge. Follow the links below for more information.

EC sales statements

If you are assessing a penalty in respect of

  • an inaccurate EC sales statement (VATA94/S65), or
  • a failure to submit an EC sales statement (VATA94/S66),

the assessment must be made within 2 years of the date evidence of the facts that justify making the assessment comes to your knowledge. This 2-year evidence of facts time limit is not separate and distinct from the other applicable time limits, see CH51300. It is a limitation of them.

Detailed guidance on the evidence of facts rule can be found in the VAT Assessment and Error Correction guidance (VAEC1300).

Regulatory provisions VATA94/S69(1)(c)-(f)

If you are assessing penalties due for breaches of regulatory provisions under VATA94/S69(1)(c)-(f), the assessment must be made within 2 years of the date you issued a written warning of the consequences of continuing to fail to comply. Again, this is a limitation of the time limits described at CH51300.

Other penalties, interest and default surcharge

You must make assessments for any of the following penalties, interest or default surcharge within 2 years of the date the VAT due for the prescribed accounting period has finally been determined. Again, this is a limitation of the time limits described at CH51300.

  • Default surcharge (VATA94/S59 and 59A)
  • Interest on VAT recovered or recoverable by assessment (VATA94/S74).
  • Penalties under regulations for the mandatory electronic filing of VAT returns (FA2002/S135).

Detailed guidance on the general assessing principles for VAT penalties can be found in the VAT Civil Penalties guidance (VCP).

VATA94/S76(2)

VATA94/S77(2) & (2A)