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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 10

If you are issuing a further warning letter confirming that a penalty assessment is due following a failure to comply with a regulatory requirement Section 69 (1) ( c) to (f) for registered traders or non registered persons, you should include the following text


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

Further to my previous letter dated XX.XX.XX* it has come to my attention that you have not complied with XX * which requires you to*.

I have to inform you that your failure to comply with XX* has rendered you liable to a penalty under Section 69 of the VAT Act 1994. For the purposes of Section 69 the date your failure to comply with the regulatory requirement commenced and the date the daily penalty will be charged from will be XX.XX.XX*.

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.

A penalty assessment will be issued to you in due course./I enclose a notice of assessment form VAT 291.**

[You are advised in your own interests to comply with XX* as soon as possible after receipt of this letter and to notify us to this effect.]**

[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.]**

Yours faithfully

  • Insert relevant text

** delete as appropriate