VCP10814 | Misdeclaration penalty: Calculation and notification of a misdeclaration penalty: Form VAT 291 what to include

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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 information must be included on the Form VAT291

• Name and address

• LVO Code

• Date of issue: Date notification sent to trader

• VAT registration number

• Penalty Code = From D2211 Type of Penalty

  • MP = Code 08

  • MP(R) = Code 10

• Default date from: start date of the VAT Penalty Period

• Default date to: the last day of the VAT Penalty Period

• Penalty rate: 15% in all cases even when mitigation given

• Penalty period: must be a live VAT period

• Total penalty payable in whole pounds (£) only

• Assessing officer signature

• Checking Officer signature: where the penalty calculation has been checked

• Countersignature: see below

• For LVO use: Trader’s name, LVO code, registration number and assessed amount

Countersignature

These limits are only recommendations. The decision on setting the countersigning limits has been delegated to Local Offices.

Note: Both copies of the VAT 291 should be headed in red “VCP10812 Letter issued” and the trader’s copy of the letter filed with the penalty papers.