CH96300 - Penalties for VAT and Excise Wrongdoing: How to process a penalty: When should you assess a penalty

Normally you should issue the penalty assessment to the person when the VAT or excise wrongdoing that gave rise to the penalty is put right.

But a penalty assessment does not have to be made at the same time as the wrongdoing it relates to is put right. It may be made up to 12 months after

  • the end of the period during which a person can appeal against the amount due because of the wrongdoing, or
  • when a person has appealed against the amount due, the time when the appeal is finally decided or the person withdraws it, or
  • where there is no such assessment, the date on which the amount due because of the wrongdoing is ascertained.

FA08/SCH41/PARA16 (4) & (5)