Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
, see all updates

Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Change of tax periods

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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 the change of tax periods at the trader’s request?
  • Was the change instigated by HMRC and agreed by the trader or was it compulsory?
  • Did the trader receive written confirmation either by letter or a new certificate of registration?
  • Was the trader operating unauthorised non-standard tax periods?