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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Misdeclaration penalty: Misdeclaration penalty for repeated errors: Objective tests for repeated errors

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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 total misdeclaration penalty (MP) liable amount for each period must equal or exceed 10% of the gross amount of tax (GAT), see VCP10801 or £500,000. This is known as a “material” error.

Repeated misdeclaration penalties MP(R) only apply to errors made on VAT returns. There is no MP(R) on additional assessments.