VCP10763 | Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Period of registration

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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

The following questions should be addressed when considering reasonable excuse

• How long has the trader been registered?

• How many visits have been conducted?

• Has the trader had previous involvement in a similar VAT registered business?

• Has the nature of the business changed during the period of registration?