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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Belated Notification Penalty: Issuing Penalty Assessments: First assurance visit

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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

An Assurance Officer will need to establish the actual net tax liability and relevant VAT on their first assurance visit if the trader is registered or is to be registered, and the penalty assessment has been issued based on

  • turnover
  • the trader’s return(s), or
  • the trader’s calculation of Relevant VAT.

The Registration Unit should ensure that details of any penalties raised are copied to the trader’s folder to ensure the Assurance Officer is notified of the penalty assessment.

The Assurance Officer should advise the Registration Unit of the correct figure for relevant VAT and a revised penalty should be issued to the trader if appropriate.