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HMRC internal manual

Excise Civil Penalties Manual

From
HM Revenue & Customs
Updated
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Introduction: Sch 41 penalties for failure to notify and VAT & Excise wrongdoing

When considering whether a taxpayer is liable to an excise civil penalty under Sections 9 and 11 of the Finance Act 1994, you should also consider whether they are liable to a penalty under Schedule 41 Finance Act 2008 for

  • Failure to notify where the obligation to notify arise on or after 1s t April 2010, or
  • VAT & Excise Wrongdoing where the contravention arises on or after 1s t April 2010.

The law says that HMRC shall assess a penalty by virtue of FA2008 16(1) where a person becomes liable to either

  • a Schedule 41 VAT & Excise Wrongdoing penalty if that person

    • makes an unauthorised issue of an invoice showing or including VAT, see CH91350 
    • misuses a product listed at CH91500 in a way that attracts a higher amount of excise duty, see CH91400, or
    • supplies a product listed at CH91500 knowing that it will be used for a purpose that attracts a higher rate of duty, see CH91450, or
    • handles goods subject to unpaid excise duty, see CH91550.

or

  • a Schedule 41 Failure to Notify penalty if a person fails to notify us by the appropriate deadline

    • that they are chargeable to tax for any tax year or accounting period where we have not given them a notice to make a return, or
    • that they are liable to register for a particular tax, or
    • of a specified change in circumstances for a particular tax, or
    • that they intend to carry out certain taxable activities.

For details of how to apply a Schedule 41 penalty you should refer to the Compliance Handbook for

  • Failure to notify penalties, see CH70000 
  • Vat & Excise Wrongdoing penalties, see CH90000.