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HMRC internal manual

Compliance Handbook

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HM Revenue & Customs
Updated
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Penalties for VAT and Excise Wrongdoing: In what circumstances is a penalty payable: Introduction

This guidance is about the new penalty regime that applies where a person, see CH91250,

  • makes an unauthorised issue of an invoice showing or including VAT, see CH91350, or
  • misuses a product listed at CH91500, see CH91400, or
  • supplies a product listed at CH91500 knowing that it will be misused, see CH91450, or
  • handles goods subject to unpaid excise duty, see CH91550.

In this guidance

  • these are referred to as VAT and/or excise wrongdoings, wrongdoings or acts
  • ‘misuse’ means using a product in a way that enables us to assess an amount of duty under any of the provisions listed in CH91500. The assessment may be on the person misusing the product or any other person.

This guidance does not give any detailed information about the wrongdoings themselves. You should refer to the relevant legislation or other guidance for the tax or duty concerned if you need to know more about the wrongdoings.

If you would like to read the legislation on these penalties, Schedule 41 Finance Act 2008, see CH91150.

FA08/SCH41/PARA2

FA08/SCH41/PARA3

FA08/SCH41/PARA4