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HMRC internal manual

VAT Civil Penalties

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Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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

Where a penalty has been processed but further actions lead to it being cancelled, you will receive a D2211 stating “MP Cancelled”.

You should make sure that action is taken to withdraw the penalty by inputting a VAT 651 for each period affected. You should then tell the trader by issuing a penalty notification letter, see VCP10811.