Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Civil Penalties

From
HM Revenue & Customs
Updated
, see all updates

Definition of Regulatory Penalties: Conditions and rates for late payment and late returns

 

This applies where there is a breach of regulation 40(2) of the VAT Regulations 1995 (late payment failure) or a breach of regulations 25(1) or 25(4) of the VAT Regulations 1995 (late furnishing failure).

The penalty rate to be applied depends on which regulatory requirement is breached.

Penalty for late payment / late furnishing

The rate to be charged should be the greater of the rate in Section 69 (3) or Section 69 (5).

This penalty should only be issued in specific circumstances.

Please Note

  • A late payment/late furnishing penalty cannot be assessed if a default surcharge, see VCP10500, is to be assessed for the same failure.
  • Section 69(5)/(6) penalties for the late payment or late furnishing of returns should only be raised if default surcharge is ineffective in ensuring compliance.
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)