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HMRC internal manual

VAT Civil Penalties

Misdeclaration penalty: Calculation and notification of a misdeclaration penalty: Penalty process seat

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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

It is recommended that processing the weekly report of potential penalties and the issue of manual assessments of penalty are centralised.

This approach should reduce the potential for errors in penalty calculation and notification, particularly where mitigation, see VCP10793, applies. It is essential that this centralised unit is made fully aware of any factors which affect the amount of penalty to be charged.

For further guidance on what the centralised unit will do see VCP10809.