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HMRC internal manual

Compliance Handbook

Penalties for VAT and Excise Wrongdoing: Other penalty issues: Interaction with other penalties: Interaction with other penalties and late payment surcharges

It is possible for a person to incur more than one penalty in respect of the same tax liability.

Where a person becomes liable to a penalty in respect of

  • the unauthorised issue of an invoice showing VAT, see CH91350,or
  • the misuse of a product so that it attracts higher duty, see CH91400, or
  • supplying a product knowing that it will be used for a purpose that attracts a higher duty, see CH91450, or
  • the handling of goods subject to unpaid excise duty, see CH91550,

and also becomes liable to

  • any other penalty or late payment surcharge on the same tax liability,

the penalty for the VAT or excise wrongdoing must be reduced by the amount of that other penalty or surcharge.

You cannot reduce a penalty below zero.

FA08/SCH41/PARA15 (1)