Incorrect VAT Fines

It has been reported that nearly half of VAT fines against businesses are levied incorrectly.

HMRC issued 17,200 automatic penalties for late filing of VAT in 2013 and approximately 49% were overturned when taxpayers requested a review.

HMRC’s internal  review system, which was set up in 2009, re-examines VAT decisions imposed on businesses in relation to tax disputes and the late filing or payment of tax.

HMRC’s computer based system automatically imposes a fine if a VAT return is filed after the deadline regardless of circumstances forcing taxpayers to make an appeal to fight the fine and prove good reason for the late filing.