Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Self-billing
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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
- Has the supplier relied on the customer to establish the correct liability of the supply?
- Has the supplier agreed to self-billing and does the supplier appear on the customer’s list of suppliers agreeing to use self-billing?
- Irrespective of the first point under this heading, is it reasonable to expect the supplier to be fully aware of the correct liability i.e. are they a major company experienced in this type of supply?