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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Breach of VAT Regulatory Provisions: Action to take with Regulatory Penalties: Breach of Regulatory Provisions Letter 5

If you are issuing a penalty assessment letter including the option to issue a further warning under Section 69 (1)(a) or (g) it should include the following text

Assessment under Section 76 VAT Act 1994 – breach of regulatory provisions


Name of trader -–-–-–-–-–-–-–-–-—- VAT Registration number

It has come to our attention that you have not complied with the requirement to (*).

You are now liable to a penalty under Section 69 of the VAT Act 1994.

The penalty is £5 each day the failure continues if there has been no previous breach of this regulatory requirement in the 2 year period prior to the beginning of your failure to comply with the regulatory requirement. The daily penalty is, however, £10 per day if there has been a previous breach within the 2 year period and £15 per day if there has been more than one breach within the 2 year period and for subsequent breaches within the 2 year period. The penalty is raised up to a maximum limit of 100 days for each period of failure and will be the greater of the sum of the daily penalties or £50.

I enclose a notice of assessment (form VAT 291).

You would continue to be liable for further periods of failure if you fail to comply with XX * on a future occasion.

Yours faithfully

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