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HMRC internal manual

VAT Fraud

What to consider prior to determining whether to use an intervention: making and issuing a Notice of Direction: failure to comply with the direction: making a decision to raise and issue a penalty

The case officer should consult the guidance, consider the evidence and seek policy advice if necessary. They should then make a recommendation to the Senior Officer if they consider that a penalty is appropriate, along the same lines as those set out in VATF35420 and VATF35430. The recommendation should then be considered by the Senior Officer, who should make the decision on whether or not to assess for a penalty, taking account of policy guidance and all the relevant evidence in the case. Both the recommending officer and the Senior Officer should keep full detailed notes, which must be saved to the taxable person’s EF

Guidance on penalties can be found in the relevant sections of the Compliance Handbook. The decision to assess for the penalty should be made in accordance with the normal procedures. If you require further policy advice in relation to penalty assessments please contact Tax Advice Administrative Team in Central Policy.