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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Penalties for Failure to Notify: Types of failure to notify: Deliberate but not concealed - Examples

Example 1

Geoff’s business turnover is growing and reaches the VAT threshold. Although he is aware of the need to notify that his business is liable to be registered for VAT he decides not to do so. He has deliberately chosen not to notify the business’s liability to be registered for VAT but has not taken any steps to conceal that fact.

Example 2

Susan is employed as a consultant engineer but also does freelance work. Susan knows that as she does not receive SA returns she must notify us that she also has income from self-employment. She decides not to do so. She has deliberately chosen not to notify her liability to income tax but has not taken any steps to conceal the need to notify us of her self-employment.

Example 3

Kevin steps up his beer making hobby and starts to sell his beer to a local pub but fails to register this activity for the purposes of the Alcohol & Liquor Duties Act 1979.

Enquiries reveal that Kevin was aware of his obligations but did not register in order to maximise his cash flow. His sales invoices are complete and we regard his failure as deliberate but not concealed.