Belated Notification Penalty: When Does A Penalty Arise: Trader exempt from registration
Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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.
Where there is a material change in the nature of supplies or a material alteration in the proportion of zero rated supplies and the change occurred from 25 July 1985 to 14 May 1987 the change should have been notified immediately, but administratively 30 days from the date of the change are to be allowed when calculating the period of failure.
Where changes occur on or after 15 May 1987, notification is required according to VAT Act 1994 Schedule 1 paragraphs 14(2) and 14(3)
- if there is a material change in the nature of the supplies at any time the trader must notify HMRC within 30 days of the date this occurred, or if a particular date cannot be identified within 30 days of the end of the quarter in which the change happened
- if there is a material alteration in the proportion of zero rated supplies in any quarter HMRC must be notified within 30 days of the end of the quarter in which the proportion changed.