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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 8

If you are issuing a penalty assessment letter under Section 69 (1) ( c) to (f) for a non registered person, it should include the text

Notice of assessment

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


I have to inform you that by your (continued**) failure to -–-–-—-* -–-–-–-– you have incurred a penalty under the VAT Act 1994 section 69. HMRC have made the following penalty assessment under Section 76 of the VAT Act 1994.

You are now liable to a penalty of £XX.XX* under Section 69 (X)* of the VAT Act 1994.

Date default commenced -–-–-–-–-—

Date to which penalty calculated -–-–-–-–-–-–-—-

Number of days -–-–-–-–-–-–-–-–-–

Daily penalty rate -–-–-–-–-–-–-–-—

Penalty payable ________

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.

I must also warn you that if within 2 years following the service/date** of this letter you fail to comply with XX* you will be liable to a further penalty under Section 69 VAT Act 1994. No further warning letter will be sent.

The penalty is £5 each day the failure continues if there has been no previous breach of this regulation in the 2 year period prior to the beginning of your failure to comply with the regulation. 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.

yours faithfully

  • insert relevant text

** delete as appropriate