VCP10435 - Belated Notification Penalty: Reasonable excuse: Postal difficulties HMRC record keeping

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

To strengthen HMRC’s position, VAT Registration Units should keep records of written and telephone enquiries

• where traders request VAT1 forms
• when VAT1 and other registration forms are issued, and
• when VAT22 reminder letters are issued.

HMRC’s position would be considerably strengthened if a record is kept of the despatch of the VAT1 form and a VAT22 reminder is sent 10 working days after despatch of the VAT1 form.