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HMRC internal manual

VAT Civil Penalties

Belated Notification Penalty: Reasonable excuse: What you should take into account

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

Claims for reasonable excuse often involve the following issues

  • If the trader states that they have sent a VAT 1 Form to HMRC which has not been received, see VCP10433.
  • If the trader states they have asked for a form VAT 1 but it was not received by them due to postal difficulties, see VCP10433.
  • If the trader states they have requested a form VAT 1 by phone or letter and the form has not been sent, see VCP10434.
  • If the trader states there are compassionate circumstances, such as illness to, trader, member of immediate family or bookkeeper, see VCP10436.
  • Trader states they were unaware of the law, see VCP10437.
  • Trader states they were unaware of turnover limits, or how to compute their turnover, see VCP10438.
  • Payments to subcontractors or employees not included in turnover see VCP10439.
  • Trader states they have misunderstood status of exempt and zero rated supplies, see VCP10440.
  • Reliance on a third party, see VCP10441.
  • Miscellaneous reasons traders give as reasonable excuse, see VCP10442.