VCP10816 - Misdeclaration penalty: Calculation and notification of a misdeclaration penalty: Form VAT651 what to input
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after 01/04/2009. Misdeclaration penalty will still apply where the due date is before 01/04/2009.
Please see the Compliance Handbook CH80000 Penalties for Inaccuracies for further details.
When completing Form VAT651 you must input the following
- VAT registration number
- Penalty date: default date from the VAT 292
- Period reference: penalty period on the VAT 292
- Penalty type: code 08 or 10 as per the VAT 292
- Current penalty liability
- Amended penalty liability: new penalty amount
- Reason for change e.g. mitigation allowed or further VAT 641 issued
- Signature
- Countersignature (see below)
Countersignature
| Form | Officer | Higher Officer | SO | Grade 7 |
|---|---|---|---|---|
| VAT 292 | 拢20,000 | 拢50,000 | 拢1 million | No limit |
| VAT 651 | 拢20,000 | 拢50,000 | 拢1 million | No limit |
These limits are only recommendations. The decision on setting the countersigning limits has been delegated to Local Offices.
Note: Both copies of the VAT 651 should be headed in red. If the penalty has been increased write 鈥淰CP10812 Letter issued鈥�. If the penalty has been withdrawn or reduced write 鈥淰CP10813 Letter issued鈥�. Then file the trader鈥檚 copy of the letter with the penalty papers.