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HMRC internal manual

VAT Civil Penalties

Calculation and notification of a penalty: Applying the penalty

Before applying a penalty you should consider the guidance at VCP11031 on discretion, and ensure the time limits are met, see VCP11046.

If you decide to issue a penalty, you should issue a letter containing the following text, together with a form VAT291. Note: The penalty code for the VAT291 is 11 and the penalty amount is £100

Dear Sir / Madam


An EC Sales list Penalty Liability Notice was issue to you on *……… in relation to material inaccuracies on your EC Sales List for the #calendar quarter / month / year *………. [e.g. 06/3 (1 July 2006 to 30 September 2006) ].

Your EC Sales List #calendar quarter / month / year *………. [e.g. 06/4 (1 October 2006 to 31 December 2006) ], also contained material inaccuracies and you are therefore liable to a civil penalty of £100 as detailed on the enclosed form VAT291: Civil Penalty Due.

If you consider that the civil penalty should not have been imposed, you can ask us to reconsider this decision. If you are still not satisfied, you can appeal to an independent VAT and Duties Tribunal.

If you wish to ask for reconsideration or make an appeal you should do so within 30 days of the date of this letter.

Yours faithfully

Officer of HM Revenue and Customs

*delete as appropriate

insert as appropriate.