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VPDS197600 | Vaping Products Duty and Vaping Duty Stamps: Penalties, offences and sanctions: Behavioural penalties: Failure to pay tax

From HM Revenue & Customs · Vaping Products Duty and Vaping Duty Stamps guidance

Where a trader:

  • fails to pay an amount of duty due by the due date

  • fails to pay an assessment made by HMRC in default of a return by the specified date

  • fails to pay an amount of vaping products duty shown in an amendment or correction of a return within 30 days after the date on which the amendment or correction is made

they shall be liable to a penalty under schedule 26, Finance Act 2021.

Late payment penalties are made up of 2 seperate charges:

  1. The first becomes payable 30 days after the due date and is based on a set percentage of the duty outstanding

  2. The second becomes payable from day 31 and will accrue daily based on the amount outstanding

This penalty is a relevant decision and can be litigated against.

They may also be liable to duty geared penalties under section 9 of the Finance Act 1994 for failure to pay the duty at the time it is due, see VPDS195300 for details. Remember that these penalties can interact with behavioural penalties.