VCP10830 - Misdeclaration penalty: Calculation and notification of a misdeclaration penalty: Penalty assessments for transfer of going concern
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after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.
On receipt of D2211 marked ‘Pre-TOGC’ you must establish the date of transfer, then follow the action guide below.
Step 1
Is the penalty after the transfer of going concern (TOGC). Including the period in which the transfer occurred, if
- yes, go to Step 2
- no, go to Step 3
Step 2
Process the penalty in the normal way. Take no further action.
Step 3
Is the penalty a new or increased amount, if
- yes, go to Step 4
- no, go to Step 5
Step 4
Mark the D2211 ‘Pre-TOGC’, see VCP10753. Take no further action.
Step 5
Recalculate the penalty. Was the penalty paid, if
- yes, go to Step 6
- no, go to Step 9
Step 6
Make reasonable attempts to contact transferor to repay monies. Have you made contact, if
- yes, go to Step 7
- no, got Step 8
Note: If local knowledge, including enquiries of the transferee cannot establish an address for the transferor, no further action need be taken.
Step 7
Authorise a manual repayment of the penalty due to the transferor. Under no circumstances should the transferee’s ledger be amended. Take no further action.
Step 8
Mark D2211 ‘Pre-TOGC, period no contact with transferor - no further action, see VCP10753.
Step 9
Take action to reduce the penalty debt on file.