VCP10742 | Misdeclaration penalty: Misdeclaration penalty for repeated errors: Conditions for charging a repeated misdeclaration penalty

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after 01/04/2009. Misdeclaration penalty will still apply where the due date is before 01/04/2009.

Please see the Compliance Handbook CH80000 Penalties for Inaccuracies for further details.

All the following conditions must be met for a misdeclaration penalty MP(R) to be triggered:

• the objective tests, see VCP10741 must be met

• we must have served a warning letter known legally as the Penalty Liability Notice (PLN), and

• there must have been two or more material errors made on VAT returns in the eight periods covered by the warning letter.