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HMRC internal manual

VAT Civil Penalties

Misdeclaration penalty: Misdeclaration penalty for repeated errors: Conditions for charging a repeated misdeclaration penalty

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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

All the following conditions must be met for a misdeclaration penalty MP(R) to be triggered:

  • the objective tests, see VCP10741 must be met
  • we must have served a warning letter known legally as the Penalty Liability Notice (PLN), and
  • there must have been two or more material errors made on VAT returns in the eight periods covered by the warning letter.