Misdeclaration penalty: Calculation and notification of a misdeclaration penalty: Penalty assessments for transfer of going concern
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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.
On receipt of D2211 marked ‘Pre-TOGC’ you must establish the date of transfer, then follow the action guide below.
|Step 1||Is the penalty after the transfer of going concern (TOGC). Including the period in which the transfer occurred, if|
- yes, go to Step 2
no, go to Step 3 Step 2 Process the penalty in the normal way. Take no further action. Step 3 Is the penalty a new or increased amount, if
- yes, go to Step 4
no, go to Step 5 Step 4 Mark the D2211 ‘Pre-TOGC’, see VCP10753. Take no further action. Step 5 Recalculate the penalty. Was the penalty paid, if
- yes, go to Step 6
no, go to Step 9 Step 6 Make reasonable attempts to contact transferor to repay monies. Have you made contact, if
- yes, go to Step 7
- no, got Step 8
|Note: If local knowledge, including enquiries of the transferee cannot establish an address for the transferor, no further action need be taken.|
|Step 7||Authorise a manual repayment of the penalty due to the transferor. Under no circumstances should the transferee’s ledger be amended. Take no further action.|
|Step 8||Mark D2211 ‘Pre-TOGC, period no contact with transferor - no further action, see VCP10753.|
|Step 9||Take action to reduce the penalty debt on file.|