SolvedVCP10823 | Misdeclaration penalty: Calculation and notification of a misdeclaration penalty: Action to take on receipt of form D2211
From HM Revenue & Customs · VAT Civil Penalties
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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.
Step 1
Has the Group / Divisional Indicator been set at [2] or [TOGC], if
yes, go to Step 2
no, go to Step 3
Step 2
Step 3
Has the previous weeks D2211 had the indicator set a [2] or [TOGC], if
yes, go to Step 4
no, go to Step 5
Step 4
Extract the previous penalty papers.
Was discretion used to withdraw previous penalty or was there a reasonable excuse which applies to the new error, if
yes, go to Step 6
no, go to Step 5
Step 5
Is there any reason to withdraw the penalty using discretion or a reasonable excuse exist for the error, if
yes, go to Step 6
no, go to Step 7
Step 6
Prepare a VAT643 and inhibit the misdeclaration penalty following the guidance in the AEC Assessment and Error correction manual in the section titled VAT643 Amendment of assessment form. Take no further action
Step 7
Are there any of the mitigating factors as shown in VCP10760, if
Yes, go to Step 8
No, go to Step 9
Step 8
Calculate the amount of mitigation manually and recalculate the penalty, then
go to Step 9
Step 9
Prepare
Then