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HMRC internal manual

Excise Civil Penalties Manual

Types of penalty: Interaction with Finance Act 2008 Schedule 41 penalties

Failure to Notify

A taxpayer may be liable to a Schedule 41 penalty for failure to comply with a relevant obligation.

Where this occurs and the taxpayer is also liable to a penalty for the same failure under Section 9 Finance Act 1994 the amount of penalty under Schedule 41 must be reduced by the amount of the penalty under Section 9 Finance Act 1994.

The following table shows which section of the law this applies to, for further guidance see CH76000.

Act Schedule 41 Finance Act 2008 ‘Failure to Notify’ penalty Section 9 Finance Act 1994 ‘Failure to Notify’ penalty
ALDA 47(1), 62(2) 47(4), 62(6)
HODA 21 21(3)
TPDA 7 7(2)
BGDA 21 24(5)

VAT & Excise Wrongdoing

Paragraphs 15(1) Schedule 41 FA2008 does provide for interaction between penalties under paragraphs 1 - 4 of that schedule and other penalties or surcharge.

However it is not envisage that a situation will arise where a taxpayer who has committed VAT or Excise wrongdoing, will get another penalty which is determined by reference to the same tax liability.

If you come across a situation where this is the case, you should contact Tax Administration, Litigation and Advice (TALA), see ECP1700.