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HMRC internal manual

VAT Civil Penalties

Breach of VAT Regulatory Provisions: Action to take with Regulatory Penalties: Breach of Regulatory Provisions Letter 4

If you are issuing a penalty assessment letter for a failure to preserve records by a non registered person, it should include the following text


Notice of assessment – Penalty for failure to preserve records

It has come to our attention that you have not complied with the requirement to preserve records under paragraph 6 (3) of Schedule 11 to the VAT Act 1994. HMRC have made the following penalty assessment under the VAT Act 1994 Section 76.

You are now liable to pay a penalty of £500 under Section 69 (2) of the VAT Act 1994.

The amount due should be paid immediately. No reminder will be sent.

You should send your payment to the Birmingham Tax Accounting Centre (add details*).

Cheques and postal orders should be made payable to ‘HM Revenue and Customs and crossed ‘A/C Payee only’. In your own interests do not send notes, coins, or uncrossed postal orders through the post.

If you disagree with the amount assessed you may request a reconsideration by this office, where the evidence to support your request will be examined. Whether or not you have asked for a reconsideration you have the right to appeal to an independent VAT and Duties Tribunal against the amount assessed and the liability to the penalty. You will find out more about the appeal procedure in the leaflet ‘Appeals and Applications to the Tribunals’ which is issued by the President of the VAT and Duties Tribunals. Copies of the leaflet and forms for making an application can be obtained from any VAT and Duties Tribunal Centre or our VAT Helpline (telephone 0300 200 3700).

If you wish to request a reconsideration or submit an appeal to a Tribunal in relation to the penalty assessment you must do so within 30 days of this letter.

Yours faithfully

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