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HMRC internal manual

Securities Guidance

HM Revenue & Customs
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Introduction and the law: the law on security: Value Added Tax: penalty for failure to provide security

Section 72(11) of the Value Added Tax Act 1994 provides

If any person supplies or is supplied with goods or services in contravention of paragraph 4(2) of Schedule 11, he shall be liable on summary conviction to a penalty of level 5 on the standard scale.

Under section 37 of the Criminal Justice Act 1982 (as amended by Section 17(1) of the Criminal Justice Act 1991), a penalty of level 5 is currently £5,000.