VCP11173 - Breach of VAT Regulatory Provisions: Calculation and notification of a penalty: Procedure table for issuing warning and assessment letters
Penalties where a warning letter is required (Section 69 (1) (c) to (f)
Note: For guidance on what content you should include in Penalty assessment or warning letters see VCP11156.
| First Breach | Warning letters/assessment letters |
|---|---|
| First breach | Issue warning letter 1 (VCP11160) |
| If regulatory requirement complied with within 14 days of date of issue of letter 1 (VCP11160) | Issue general warning letter 9 (VCP11168) |
| If regulatory requirement not complied with within 14 days of letter 1 (VCP11160) and penalty continues to accrue | Issue warning letter 2 (VCP11161) |
| If regulatory requirement not complied with within 14 days of letter 1 (VCP11160) and 100 days has already expired | Issue warning letter 2 (VCP11161) with VAT 291 assessment (at lowest rate of £5 per day) |
| If regulatory requirement complied with within 100 days limit | Issue penalty assessment letter 7 (VCP11166) or letter 8 (VCP11167) for period of breach (at lowest rate of £5 per day) |
| If regulatory requirement not complied with within 100 days limit | Issue penalty assessment letter 7 (VCP11166) or letter 8 (VCP11167) assessing for 100 day default (at lowest rate of £5 per day). |
| If no further breaches within 2 years of date of warning letter 9 (VCP11168) or warning letter 7 (VCP11166) or letter 8 (VCP11167) | The cycle starts again. On the next breach issue warning letter 1 (VCP11160) |
| If further breach within 2 years of date of warning letter 9 (VCP11168) or warning letter 7 (VCP11168) or letter 8 (VCP11167) | Use the procedures for second and subsequent breaches (see below). |
| Second and further breaches | Warning letters/assessment letters |
|---|---|
| Issue warning letter 10 (VCP11169) when breach discovered (with VAT 291 if 100 day period already expired) at the rate of £10 per day for a 2nd breach and £15 per day for subsequent breaches. | |
| If regulatory requirement complied with within 100 days limit | Issue penalty assessment letter 7 (VCP11166) or letter 8 (VCP11167 for period of breach at the rate of £10 per day for a 2nd breach and £15 per day for subsequent breaches. |
| If regulatory requirement not complied with within 100 days | Issue penalty assessment letter 7 (VCP11166) or letter 8 (VCP11167) assessing for 100 day default at the rate of £10 per day for a 2nd breach and £15 per day for subsequent breaches. |
| If no further breaches within 2 years of date of warning letter 10 (VCP11169) or warning letter 8 (VCP11167) or letter 9 (VCP11168) | The cycle starts again. On the next breach issue warning letter 1 (VCP11160) |
| If further breach within 2 years of date of warning letter 10 (VCP11169) or warning letter 7 (VCP11166) or letter 8 (VCP11167) | The cycle starts again. On the next breach issue another warning letter 10 (VCP11169) |