New Means of Transport: Discretion, reasonable excuse and mitigation: Discretion
Please note: the Section 67 VATA 1994 penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 Finance Act 2008. The Failure to Notify penalty applies to obligations to notify the acquisition of a new means of transport on or after 01/04/2010. The penalty under Section 67 VATA 1994 continues to apply where the obligation to notify the acquisition of a new means of transport occurs before 01/04/2010.
Please see the Compliance Handbook CH70000 for more information about the Failure to Notify penalty.
We have the discretion whether or not to impose penalties. Provided there are sound reasons for doing so we can exercise our discretion not to impose a penalty.
This is however, likely to be exceptional and a manager’s approval should always be obtained. The case papers should record the reasons for the decision.