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HMRC internal manual

VAT Civil Penalties

Belated Notification Penalty: When Does A Penalty Arise: Local Authorities

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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

According to Section 42 VAT Act 1994 a Local Authority who makes any taxable, including zero rate, supplies in the course or furtherance of business is liable to be registered for VAT whatever the value of those supplies.

However, if only infrequent or minimal taxable supplies are made HMRC has discretion not to register Local Authorities in certain circumstances, see V1-14 for further information.