Value Added Tax Act 1994 Schedule 11A paragraph 10

Penalty for failure to notify use of notifiable scheme

Paragraph 10 of Schedule 11A sets out the penalty that applies when a person fails to notify HMRC of their use of a notifiable VAT avoidance scheme, and the circumstances in which that penalty will not apply.

• A person who fails to notify HMRC of their use of a notifiable scheme as required by paragraph 6 is liable to a penalty, the amount of which is calculated under paragraph 11.
• No penalty arises if the person can demonstrate to HMRC or, on appeal, to a tribunal that there was a reasonable excuse for the failure to notify.
• No penalty arises if the same conduct has already led to a criminal conviction under any legislation, or to a penalty under section 60 of the VAT Act 1994 (dishonest evasion of VAT), or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007.
• These protections prevent a person from being penalised twice for the same failure — once under this paragraph and once under another penalty or criminal provision.