Chapter CH90100

Published date11 March 2016
Record NumberCH90100
CourtHM Revenue & Customs

Most people comply with tax law but there are some who don’t. We have financial penalties to encourage these people to meet their legal obligations.

From 1 April 2010 this wrongdoing penalty regime applies where a person

  • makes an unauthorised issue of an invoice showing or including VAT
  • misuses a product so that a higher rate of excise duty is payable, or
  • handles goods subject to unpaid excise duty.

This regime also applies to Landfill Tax from 1 April 2018 when a person makes, knowingly causes, or knowingly permits a disposal of material at an unauthorised waste site, see CH91800.

Although the title of all the pages in this section do not include any reference to Landfill Tax, they apply throughout to Landfill from 1 April 2018.

We will not charge a penalty if we are satisfied that the person

  • for Landfill Tax wrongdoings; committed the wrongdoing non-deliberately
  • for VAT and excise wrongdoing; has a reasonable excuse for a non-deliberate act, and
  • if the excuse has ended, has remedied the act without unreasonable delay.

The amount of the penalty is a percentage of the VAT shown on, or included in, the invoice or the extra excise duty due, or Landfill tax due. The percentage is determined by the behaviour that led to the wrongdoing - higher penalties are payable if the act was deliberate or deliberate and concealed.

Reductions in the percentage penalty are given for disclosure and depend upon

  • whether the disclosure is unprompted or prompted, and
  • the quality of the...

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