Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Civil Penalties

From
HM Revenue & Customs
Updated
, see all updates

New Means of Transport: Calculation and notification of the penalty: Notification of a penalty

Please note: the Section 67 VATA 1994 penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 Finance Act 2008.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.

Imposing a penalty for failure to notify / late notification

This paragraph applies whether the notification is received from the acquirer or from a third party e.g. DVLA.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the individual replies with a reasonable excuse or asks for mitigating circumstances to be taken into account the case will be considered on these grounds before the issue of any penalty.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

The penalty is imposed by letter issued by the PTU Dover who also monitor for payment. Liverpool DMU manage the collection of the debt and payment is enforced if necessary through civil recovery action. Distress, or poinding in Scotland, is not used for debts of this kind.

How the PTU impose a penalty for failure to pay/late payment

When an individual has notified the acquisition of a new means of transport, the PTU Dover assess the amount of VAT due on the acquisition and notify the individual of that amount on Form VAT 413. They are allowed 30 days to pay.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the payment is not received a penalty is to be considered. However, if the individual replies with a reasonable excuse, or asks for mitigating circumstances to be taken into account the case will be considered on these grounds before the issue of any penalty.

The penalty is imposed by letter issued by the PTU who also monitor for payment. Liverpool DMU manage collection of the debt and payment is enforced if necessary through civil recovery action. Distress, or poinding in Scotland, is not to be used for debts of this kind.