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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Default Surcharge: Discretion, reasonable excuse and mitigation: Trader states return or payment sent in time

Section 59(7)(a) and Section 59A(8)(a)(i) of the VAT Act 1994 allows traders to appeal against a surcharge.

You should take account of the following

  • Does the trader have proof of posting or, for POA traders, evidence of when the bank payment transfer was initiated?
  • Was the date of signature on the VAT return after due date?
  • Disruption to the postal or banking services (if appropriate).