Misdeclaration penalty: Calculation and notification of a misdeclaration penalty: Form VAT 291 what to include
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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 information must be included on the Form VAT291
- Name and address
- LVO Code
- Date of issue: Date notification sent to trader
- VAT registration number
Penalty Code = From D2211 Type of Penalty
- MP = Code 08
- MP(R) = Code 10
- Default date from: start date of the VAT Penalty Period
- Default date to: the last day of the VAT Penalty Period
- Penalty rate: 15% in all cases even when mitigation given
- Penalty period: must be a live VAT period
- Total penalty payable in whole pounds (£) only
- Assessing officer signature
- Checking Officer signature: where the penalty calculation has been checked
- Countersignature: see below
- For LVO use: Trader’s name, LVO code, registration number and assessed amount
|Form||Officer||Higher Officer||SO||Grade 7|
|VAT 291||£20,000||£50,000||£1 million||No limit|
|VAT 651||£20,000||£50,000||£1 million||No limit|
These limits are only recommendations. The decision on setting the countersigning limits has been delegated to Local Offices.
Note: Both copies of the VAT 291 should be headed in red “VCP10812 Letter issued” and the trader’s copy of the letter filed with the penalty papers.