Change of approach to inaccuracy penalties

HMRC is changing its approach  to innaccuracy penalties for cases where HMRC intervened to correct an inaccuracy before the next return was received, preventing the inaccuracy from being reversed. When HMRC are satisfied that, but for their intervention, the inaccuracy would have been automatically corrected in a subsequent return, customers will receive a reduced penalty. 

 

If you have been penalised because HMRC picked up an error on a visit before you were able to correct it on the next return you should review the position.

 

More information is available in HMRC's Brief at http://www.hmrc.gov.uk/briefs/vat/brief1511.htm

Should you be submitting a claim?

Following the recent ECJ decision in the case of Manfred Bog and others (reported in CVC VAT Alert 23 March 2011), HMRC has issued Revenue & Customs Brief 19/11. HMRC considers that the ECJ judgment has no implications for the UK treatment of supplies of hot food and businesses should continue to treat their supplies in accordance with published guidance.  Despite this Brief we believe that businesses should consider submitting refund claims to protect their position. Any business  that would like to submit a claim or discuss this further should contact us on 020 7830 9669.

Read more recent VAT news in our latest newsletter at http://www.ukvatadvice.com/images/stories/newsletters/110406cvcnews.pdf

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