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HMRC internal manual

Compliance Handbook

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

A new penalty system applies where a person

  • makes an unauthorised issue of an invoice showing or including VAT, see CH91350, on or after 1 April 2010, or
  • misuses a product, see CH91500, on or after 1 April 2010 that should attract a higher rate of excise duty, see CH91400, or
  • supplies a product, see CH91500, on or after 1 April 2010 knowing that it will be misused for a purpose that should attract a higher excise duty, see CH91450, or
  • handles goods subject to unpaid excise duty on or after 1 April 2010 , see CH91550.

We cannot charge a penalty if we are satisfied that the person

  • has a reasonable excuse for a non-deliberate act, and
  • if the excuse has ended, has remedied the act without unreasonable delay.

Further guidance is at CH92000.

FA08/SCH41/PARA2

FA08/SCH41/PARA3

FA08/SCH41/PARA4

FA08/SCH41/PARA20

SI2009 No 511