What is the minimum penalty for deliberate not concealed VAT errors when unprompted?

The minimum penalty for deliberate but not concealed VAT errors, when unprompted, is indeed 70%. Under the penalties regime for VAT, deliberate errors are considered more serious than careless mistakes due to the intention behind them. However, they are treated as less severe than concealed errors, which attract higher penalties.

When a taxpayer makes a deliberate error but comes forward voluntarily to disclose it (unprompted), the penalties are designed to encourage corrective action without further enforcement action from HMRC. In these cases, the penalty starts at 70% of the VAT due, reflecting the seriousness of a deliberate error while still recognizing the benefits of voluntary disclosure.

Therefore, the choice of 70 is appropriate as it accurately represents the minimum penalty for this situation, promoting compliance by offering a more favorable penalty for those who take the initiative to correct their mistakes before being prompted by HMRC.