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Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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.
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
Process the penalty in the normal way. Take no further action.
Is the penalty a new or increased amount, if
- yes, go to Step 4
- no, go to Step 5
Mark the D2211 ‘Pre-TOGC’, see VCP10753. Take no further action.
Recalculate the penalty. Was the penalty paid, if
- yes, go to Step 6
- no, go to Step 9
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.
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.
Mark D2211 ‘Pre-TOGC, period no contact with transferor - no further action, see VCP10753.
Take action to reduce the penalty debt on file.