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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 9

If you are issuing a general warning letter for registered traders and non registered persons, it should include the following text


Name of trader/(non registered person)** -–-–-–-–-–-–-–-–-–-– VAT Registration number**

Further to my letter dated XX.XX.XX* I have now confirmed that you have complied with XX* and that no (further*) penalty assessment will be made on this occasion.

I must, however, 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