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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Belated Notification Penalty: When Does A Penalty Arise: Transfer of a going concern

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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.

A trader must register with HMRC the transfer of a going concern.

From 25 July 1985 the trader must notify HMRC within 30 days of the date the business is transferred, in accordance with the VAT Act 1994, Schedule 1, paragraphs 1(2) and 7.

Note: Further guidance on registration can be found in V1-28 Registration.

If the trader does not register within the 30 days, they will become liable to a belated notification penalty.