Penalties - failure to notify - overview

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Penalties - failure to notify - overview
  • Indirect taxes covered by the failure to notify
  • When is the penalty applied?

This guidance note provides an overview of the penalties that can be levied on a person that fails to notify HMRC of a relevant event and this note should be read in conjunction with the Overview of the three penalties introduced from 1 April 2010 and Penalties - failure to notify - calculating and assessing the penalty guidance notes.

More information can be found in HMRC factsheet: CC/FS11 .

Indirect taxes covered by the failure to notify

CH71300; FA 2008, Sch 41, para 1

The following situations will be affected by the failure to notify penalty.

VAT – failure to notify HMRC of:

  • a liability to be registered for VAT
  • a material change in the nature of supplies made by a person previously exempted from registering
  • a material alteration in the proportion of zero-rated supplies made by a business that was previously exempted from registering
  • liability to be registered in respect of supplies from other EU member states
  • liability to be registered in respect of acquisition from other EU member states
  • acquisitions made by a business that is exempted from registering
  • liability to be registered in respect of disposal of assets for which a VAT repayment is claimed
  • the acquisition of excise goods or a new means of transport from another EU member state by a person who is a non-taxable person

Insurance premium tax (IPT) – failure to notify HMRC of:

  • registering in respect of receipt of premiums in the course of taxable business
  • intended receipt of premiums in the course of a taxable business
  • registering as a taxable

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