Effective date of penalty (>FA 2007, Sch. 24, para. 2)

The penalty for a failure to take ‘reasonable steps’ to notify HMRC that an assessment is too low applies to return periods commencing after 31 March 2008 where the return is filed after 31 March 2009 (FA 2007, s. 97(2); Finance Act 2007, Schedule 24 (Commencement and Transitional Provisions) Order 2008 (SI 2008/568 (C. 20))).

Introduction to penalty for known under-assessment: 30-day time-limit

A penalty can be assessed on a person (P) for a failure to take ‘reasonable steps’ to notify HMRC within 30 days from the date of a VAT assessment that it is an under-assessment (FA 2007, s. 97 and Sch. 24, para. 2(1)). This is normally treated as ‘careless behaviour’.

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