13/06/2022
VAT Late Payment Penalty Rules from January 2023
What is changing?
The penalty regime for all VAT registered businesses is changing from 1 January 2023 to become a “points” based system for late Returns.
This will completely replace the former default surcharge system.
Points will be recorded by HMRC based on each failure to submit a VAT Return on time. When the points total exceeds the relevant threshold a fixed £200 penalty will be imposed. After reaching the threshold no further points are added, but further £200 penalties are charged for each subsequent late Return.
The system is designed to reward good compliance, so when a period of full compliance is achieved the points are cancelled.
For more information on this, please contact Alan Rolfe on 023 8046 1235 or download the full guide here.
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