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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Default Surcharge: Discretion, reasonable excuse and mitigation: Non receipt of Surcharge Liability Notice

The Surcharge Liability Notice (SLN) acts as a warning to businesses that if they fail tosubmit further payments on time, within the period shown on the Notice, they will beliable to a surcharge.

It must be received by the business before any subsequent default surcharge can be issued.It is sometimes difficult to definitely establish that an SLN was received by the trader.

Decisions are often made on the balance of probability. However you should take account oftwo basic points before reaching a decision

  • Was there a change in the trader’s address during the relevant period?
  • Was the SLN issued with a tax assessment which was paid?