Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Period of registration
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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 following questions should be addressed when considering reasonable excuse
- How long has the trader been registered?
- How many visits have been conducted?
- Has the trader had previous involvement in a similar VAT registered business?
- Has the nature of the business changed during the period of registration?