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HMRC internal manual

VAT Civil Penalties

Belated Notification Penalty: Belated Notification forms and letters: Letter 12

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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

Issue this letter if the penalty is increased and the trader is not to be registered.

Failure to Notify: Increase in civil penalty

Personal and Confidential


I refer to the letter of …, notifying you of an assessment of Value Added Tax in the sum of £… and a civil penalty for failure to notify in the sum of £…. The Commissioners, on further information now available, assess an additional amount of tax due as £….

Because of the increase in your assessed tax liability, a further amount of penalty is due, as follows:

(Details of additional penalty)

The total amount of £…, *plus the amount of £… notified in the letter dated … is now due from you and should be paid immediately to HMRC at the Birmingham Tax Accounting Centre in the reply paid envelope provided.

If you disagree with a decision made by HMRC you can ask for it to be reconsidered. You should do this if you can provide further information, or there are facts which you think may not have been fully taken into account.

If you are still not satisfied you may be able to appeal to an independent VAT and Duties Tribunal. Whether or not you have asked for a reconsideration, you have the right to appeal against the Commissioners’ decision that you are liable to a penalty and the amount assessed. If you wish to appeal against the amount of the VAT assessed you must submit a VAT return declaring the amount you consider to be due and this must be acceptable to the Commissioners. You will find out more about the appeal procedure in the leaflet ‘Appeals and Applications to the Tribunals’ which is issued by the President of the VAT and Duties Tribunals. Copies of the leaflet and forms for making an appeal can be obtained from any VAT and Duties Tribunal Centre or the VAT Helpline (telephone 0300 200 3700).

If you wish to request a reconsideration or submit an appeal to a Tribunal in relation to any decision of HMRC notified in this letter you must do so within 30 days from the date of this letter.

Yours *faithfully/sincerely

*Delete as necessary