VCP10381 - Belated Notification Penalty: Why a penalty arises: What is a Belated Notification Penalty

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008. »Ê¹ÚÌåÓýapp Failure to Notify penalty applies to obligations to notify HMRC of a liability to be registered for VAT on or after 01/04/2010. »Ê¹ÚÌåÓýapp Belated Notification Penalty under Section 67 VATA 1994 continues to apply to obligations to notify a liability to be registered for VAT before 01/04/2010.

Please see the Compliance Handbook CH70000 for more details about the new failure to notify penalty.

To encourage traders to comply a penalty can be imposed because of late notification of

  • a liability to be registered for VAT
  • a material change in the nature of supplies made by the trader
  • a material change or alteration in the proportion of zero rated supplies for traders exempt from registration
  • any acquisition supply which is not zero rated for traders exempt from registration.

This guidance provides information on how to deal with Belated Notification penalties.

»Ê¹ÚÌåÓýappre are no implications under the Human Rights Act for belated notification penalties, see VCP10160.