VCP10762 - Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Size of the trader

Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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.

The following questions should be addressed when considering reasonable excuse

• Is it a sole proprietorship, partnership or limited company under the close daily control of the constituent parts e.g. husband and wife as partners/directors employing no staff?
• Is it a largely organised business with a well organised accounting system?
• Who completes records/returns?
• What checks are applied?