Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Civil Penalties

From
HM Revenue & Customs
Updated
, see all updates

Default Surcharge: Calculation and notification of the surcharge: Calculation of the surcharge

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

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

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

The decimals on surcharge calculations should not be rounded up - for example a 10% surcharge on an amount of £2,345.67 should be calculated as £234.56 not £234.57.

Calculating surcharges on Payment on Account traders

At the end of each quarter the trader’s account is analysed to establish if either of the two payments on account or the balancing payment with the return was received late. All late payments are added together to establish the total value of the default and the rate of surcharge is applied to this total value.