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HMRC internal manual

VAT Civil Penalties

Belated Notification Penalty: Issuing Penalty Assessments: Monitoring and checking VAT returns from a trader

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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

Trader already registered - correction of effective date of registration to an earlier date.

The registration Unit should monitor the case for receipt of the return covering the period from the new EDR to the previous EDR.

The Registration Unit should check this return against the trader’s calculation of ‘Relevant VAT’ and investigate any material difference via the Assurance Officer whom discovered that the trader should have been registered from an earlier date.

A check should be made via the Assurance Officer that the return is acceptable, see VCP10463.

If the return is not accepted by the Assurance Officer the officer should be asked to determine the liability for the penalty.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)