CH192300 - Penalty reform - penalties for failing to file VAT returns by the due date for periods from 1 January 2023: assessing penalty points and financial penalties: what the notice must include
NB: “These rules currently only apply to VAT for VAT periods starting on or after 1 January 2023. These rules will come into force for other tax regimes at a future date. You must check the date from which these rules apply for the tax or duty you are dealing with”
Where a taxable person is liable to a penalty point for a group of returns, HMRC may award the person a penalty point for that group.
Where HMRC award a penalty point they must notify the taxable person, and state in the notice:
(a) the failure (or failures) in respect of which the penalty point is awarded, and
(b) the group of returns for which the penalty point is awarded
Where a taxable person is liable to a financial penalty HMRC may assess the penalty.
Where HMRC assess a financial penalty, they must:
(a) notify the taxable person, and
(b) state in the notice the failure(s) for which the taxable person is liable to a financial penalty.
A notice of an assessment of a financial penalty cannot be issued before - but may be issued at the same time as - a notice of the award of the penalty point that caused the person to be liable to a financial penalty.
The legislation does not provide for a time limit by which the taxable person must be notified of either penalty.
An assessment of a financial penalty:
- is to be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for),
- may be enforced as if it were an assessment to tax, and
- may be combined with an assessment to tax.
FA2021 SCH 24 paras 6 & 16