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Provisions relating to a failure to notify HMRC within 30 days of an under-assessment of VAT are included within FA 2007, Sch 24.

HMRC can impose a penalty¹ if a person has failed to take reasonable steps to notify HMRC, within the period of 30 days beginning with the date of the assessment, that it is an under-assessment.

When deciding whether a person has failed to take reasonable steps to notify HMRC, within the period of 30 days beginning with the date of the assessment, that it is an under-assessment, HMRC must consider:

1. Ìý

   •ÌýÌýÌýÌý whether the person knew, or should have known, about the under-assessment

2. Ìý

   •ÌýÌýÌýÌý what steps it would have been reasonable to take to notify HMRC

The standard amount of the penalty is 30% of the potential lost revenue².

If a person that would otherwise be liable for a penalty of 30% of the potential lost revenue has made a disclosure of the under-assessment