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HMRC internal manual

VAT Civil Penalties

Misdeclaration penalty: Why a penalty arises: Misdeclaration general principles

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after 01/04/2009. Misdeclaration penalty will still apply where the due date is before 01/04/2009.

Please see the Compliance Handbook CH80000 Penalties for Inaccuracies for further details.

The purpose of a misdeclaration penalty is to stimulate accurate and timely returns. It is important that both traders and officers understand that the penalty carries no implication of dishonesty.

Only the very largest misdeclarations trigger liability to a penalty and they must be regarded as evidence of a lack of care.