Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

VAT Civil Evasion Penalty

Apportioning VAT civil evasion penalty: personal gain

If you are to apportion a penalty to a named officer for personal gain and for whom there is evidence of dishonesty, you should be able to show by fact or implication that the benefits from the evasion went, in whole or in part, to that person direct and not through normal company payment for wages, etc. For instance, a director may admit that there was personal gain from the evasion or it may be clear from the company’s records or the director’s lifestyle that the proceeds from the evasion went directly into the hands of the director.

Caseworkers should look for indications of personal gain during the course of a compliance check and any recommendation for apportioning the penalty to directors/managing officers who have personally gained, together with the facts, should be appropriately recorded.