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HMRC internal manual

VAT Civil Penalties

From
HM Revenue & Customs
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Misdeclaration penalty: Calculation and notification of a misdeclaration penalty: Notification of a new misdeclaration penalty

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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

When a penalty arises you should.

  • Notify the trader of the period(s) assessed. For guidance on what your letter of notification should contain, see the specimen letter at VCP10812.
  • Input on VALID a separate VAT 291 for each period for which a penalty has been assessed, see VCP10814. Both copies of the VAT 291 should be clearly headed in red “VCP10812 Letter issued”.