Value Added Tax Act 1994 section 66

Failure to submit section 55A statement

Section 66 sets out the penalty regime that applies when a person fails to submit a section 55A statement (a statement required under Schedule 11 regulations relating to reverse charge supplies) by the prescribed deadline, including the escalating daily penalties and the notice procedure HMRC must follow.

• A person who misses the deadline for submitting a section 55A statement is in default until it is submitted, and HMRC may serve a notice giving 14 days to remedy the default before daily penalties begin to accrue
• Daily penalties start at £5 per day (up to 100 days) for the first default, rising to £10 and then £15 per day for second and subsequent defaults while the notice remains in force, with a minimum penalty of £50 in all cases
• Once a notice has been served, any further defaults within the following 12 months attract penalties automatically without the need for additional notices, and the notice period resets each time a new default occurs
• A person can escape the penalty if they can demonstrate to HMRC or a tribunal that the statement was dispatched in time to be reasonably expected to arrive by the deadline, or that there was a reasonable excuse for not dispatching it

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