Updated VAT misdeclaration penalty notice
HMRC have updated Notice 700/42 entitled ‘Misdeclaration penalty and repeated misdeclaration’. The notice cancels and replaces the previous version published in March 2002.
The misdeclaration penalty and the repeated misdeclaration penalty were replaced by new penalties for inaccuracies in tax returns and documents. The new penalties apply from 1 April 2008, but only for returns where the accounting period commences on or after 1 April 2008 with a due date to be sent to us on or after 1 April 2009. There are different implementation dates for penalties in relation to incorrect documents which are not returns.
The misdeclaration penalty, the repeated misdeclaration penalty and the civil evasion penalty will continue to apply to VAT returns outside the parameters above.
The notice has been updated to include references to the new penalties for inaccuracies in tax returns and documents which replaces the misdeclaration penalty and the repeated misdeclaration penalty as well as changes to the de minimis limits for correcting errors discovered on VAT returns already submitted.