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HMRC internal manual

VAT Civil Penalties

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HM Revenue & Customs
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Belated Notification Penalty: Why a penalty arises: What is a Belated Notification Penalty

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008. The Failure to Notify penalty applies to obligations to notify HMRC of a liability to be registered for VAT on or after 01/04/2010. The Belated Notification Penalty under Section 67 VATA 1994 continues to apply to obligations to notify a liability to be registered for VAT before 01/04/2010.

Please see the Compliance Handbook CH70000 for more details about the new failure to notify penalty.

To encourage traders to comply a penalty can be imposed because of late notification of

  • a liability to be registered for VAT
  • a material change in the nature of supplies made by the trader
  • a material change or alteration in the proportion of zero rated supplies for traders exempt from registration
  • any acquisition supply which is not zero rated for traders exempt from registration.

This guidance provides information on how to deal with Belated Notification penalties.

There are no implications under the Human Rights Act for belated notification penalties, see VCP10160.