VAT Penalties

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Have you received a VAT or Duty penalty? OMNIS has a specialist VAT team which can talk you through your options. Why not give us a call?

HMRC's Penalty Regime

In 2009 HMRC introduced a new comprehensive cross tax penalty regime.

Prior to that date tax penalties had been administered separately - a legacy from the era before the 2 heavyweight departments of HM Customs and Excise and the Inland Revenue joined forces as HMRC.

The new penalty regime consists of of two branches:-

  1. Inaccuracy Penalties; &
  2. Wrongdoing Penalties

As far as VAT is a concerned, an inaccuracy penalty deals with businesses that are already registered for VAT.

The level of the VAT penalty is driven largely by the behaviour which caused the error. As such a careless error will not be punished as severely as a deliberate error.

The wrongdoing penalty regime deals with businesses that have failed to notify their liability to register for VAT.

Careless errors attract maximum penalty of 30% of VAT liability figure, deliberate errors 70% and deliberate and concealed errors an eye-watering 100% of the error figure.

Penalties may be reduced or cancelled on appeal and HMRC will also reduce VAT penalties where taxpayers have co-operated in establishing the VAT due figure.

We have a solid track record of mitigating VAT penalties. You might think it a lost cause but in our experience there is always something that can be done.

Why not give us a call?

 

 

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