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HMRC internal manual

VAT Civil Penalties

From
HM Revenue & Customs
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Belated Notification Penalty: Belated Notification forms and letters: Introduction and description of letters

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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

The following letters should be used either to assess the trader for the penalty or to request the trader to send in a figure for ‘relevant VAT’ to be used as a basis for issuing penalty assessments.

  • Letter 1 - Previously exempt trader no longer liable to be registered, penalty assessment or trader calculates ‘relevant VAT’, see VCP10482.
  • Letter 2 - Previously exempt trader who is required to be registered, trader calculates ‘relevant VAT’, see VCP10483.
  • Letter 3 - Trader no longer liable to be registered, trader calculates ‘relevant VAT’, see VCP10484.
  • Letter 4 - Trader no longer liable to be registered, penalty assessment or trader calculates ‘relevant VAT’, see VCP10485.(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • Letter 5 - Correction of the effective date of registration to an earlier date, penalty assessment or trader calculates ‘relevant VAT’, see VCP10486.
  • Letter 6 - Trader late in notifying liability to register, trader calculates ‘relevant VAT’, see VCP10487.
  • Letter 7 - Compulsory registration, trader calculates ‘relevant VAT’ see VCP10488.
  • Letter 8 - Transfer of going concern/reallocation of VAT number refused, trader calculates ‘relevant VAT’, see VCP10489.
  • Letter 9 - Transfer of going concern/reallocation of VAT number not requested or VAT 68 action failed, trader calculates ‘relevant VAT’, see VCP10490.
  • Letter 10 - Transfer of a going concern, VAT 68 action, see VCP10491.
  • Letter 11 - Reduction of civil penalty, see VCP10492.
  • Letter 12 - Increase in civil penalty, see VCP10493.

Further guidance on administrative procedures is contained in the relevant sections of V1-28 Registration.