HRMCs ‘failure to notify’ penalty

 

Late Registration Penalty (700/41) and Misdeclaration Penalty and Repeated Misdeclaration (700/42)

 

HMRC have announced updated versions of the above VAT Notices.  The Late Registration penalty has been replaced by a new failure to notify penalty for obligations to notify liability to be registered on or after 1 April 2010.  The penalty varies between 0% and 100% and is determined by whether HMRC were prompted or unprompted.

 

In addition the following “behaviour” factors are taken into consideration, the definitions below are taken from HMRC:

 


Non-deliberate

“This is where you failed to tell us about a circumstance that affected your liability to tax within the relevant time limit, but the failure was not deliberate or deliberate and concealed.”

 

Deliberate but not concealed
“This is where you knew that you should have told us about a circumstance that affected your liability to tax within the relevant time limit, but you chose not to tell us.”

Deliberate and concealed

 

“This is where you knew that you should have told us about a circumstance that affected your liability to tax within the relevant time limit, but you chose not to tell us. As well as choosing not to tell us, you also took active steps to hide the failure to notify from us.”

 

The important point to note that no penalties are due if there is a “reasonable excuse”.

 

For further information please contact Carol Watters on 01772 821021.

 

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