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Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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.

Once an event gives rise to a belated notification penalty (BNP), a BNP assessment can be raised within a period up to twenty years from the date of that event where there is a loss of VAT attributable to a failure to comply with a notification obligation.

Where there is no loss of VAT attributable to a failure to comply with a notification obligation a BNP assessment must be raised within 4 years from the date of the event that gives rise to the penalty.

If the relevant VAT in the penalty period is nil or if a repayment is due there is liability to a £50 deminimis penalty; this must be issued within 4 years of the date of the event that gives rise to the penalty. Because failure to notify is a continuing failure, you must determine the last date at which the trader failed to notify HMRC. This date will be the date that gives rise to the penalty

»Ê¹ÚÌåÓýapp date giving rise to the penalty is therefore to be taken as the day before HMRC are notified of the requirements to register or notify a material change or alteration.

Note: This is confirmed in the Customs v Shingleton [1988] STC 190 case

In practice the penalty should be raised within a reasonable period of establishing the liability for the penalty

Please see VCP10422 for the penalty assessment procedures when a person dies.