Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Pressure of work
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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
- Was this foreseeable such as the end of a financial year, the company moving premises, staff shortages/changes, periods of leave etc?
- Were contingency plans made?
- Is the trader involved in annual seasonal variations?
- What steps had been taken to ensure that the tax affairs were properly managed?