VCP10453 - Belated Notification Penalty: Calculation of a penalty: Effective date of registration is corrected to an earlier date
Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008. The Failure to Notify penalty applies to obligations to notify HMRC of a liability to be registered for VAT on or after 01/04/2010. The 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.
A registration or Joint Shadow Economy Team (JOSET) visit will often identify an earlier effective date of registration
Where correction of the effective date of Registration (EDR) to an earlier date is necessary, consider whether a penalty is to be imposed for any period of belated notification on or after the 25 July 1985.
The period of belated notification will run from the correct EDR to the day before the day of receipt of the original notification.
This applies whether or not a penalty was incurred at the time the original notification was received. Credit must be given for any earlier penalty raised and paid following the original notification.
For the EDR penalty letter to use, see VCP10486. V1-28 Registration gives details of administrative procedures.