Commentary

V7.144 Belated VAT registration—penalty calculation and possible mitigation

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.144 Belated VAT registration—penalty calculation and possible mitigation

Part V7 Tax planning | Commentary

V7.144 Belated VAT registration—penalty calculation and possible mitigation

The calculation of a belated notification penalty is based on the net amount of tax payable for the period from when the business should have registered for VAT to the time when it actually became registered. The amount of the penalty then varies according to the total length of this period.

If the date of registration should have been before 1 April 2010:

  1.  

    •     where the period is less than nine months a maximum penalty of 5% (or £50 if greater) will be applied

  2.  

    •     for a period of between nine and 18 months, a maximum penalty of 10% (or £50 if greater) will be applied

  3.  

    •     for a period exceeding 18 months, a maximum penalty of 15% (or £50 if greater) will be applied

If the date of registration should have

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