Value Added Tax Act 1994 section 69B

Breach of record-keeping requirements imposed by directions

Section 69B sets out the penalties that apply when a person fails to comply with record-keeping directions issued by HMRC under Schedule 11, including daily penalties for ongoing non-compliance and a fixed penalty for failing to preserve records.

• A daily penalty of £200 applies for each day a person fails to comply with a record-keeping direction, up to a maximum of 30 days (i.e. a maximum total penalty of £6,000).
• A fixed penalty of £500 applies where a person fails to preserve records as required by the direction.
• No penalty arises if the person can demonstrate a reasonable excuse for the failure to HMRC or, on appeal, to a tribunal.
• No penalty applies under this section if the same conduct has already resulted in a penalty under section 60 or for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007, or in a criminal conviction.