Get Ready for the New VAT Penalties
HMRC’s new VAT penalties start from 1st January 2023
For VAT periods starting on or after 1st January 2023, HMRC is replacing the default surcharge with separate penalties for late returns and late payment of VAT. At the same time, HMRC is introducing a new approach to charging interest on late-paid VAT.
The new points-based system for late submissions is designed to be more lenient for the occasional slip-up, whilst still penalising those who repeatedly fail to comply. It will operate in a similar way to the penalty points system for motoring offences. Also, like the system for motoring penalties, the points expire after a period of time.
If your business submits its return late (which also applies if you submit a nil or repayment return late), you could face penalty points and a £200 fine.
To view the new points-based system – CLICK HERE>>> Prepare for upcoming changes to VAT penalties and VAT interest charges – GOV.UK (www.gov.uk)
If you need any assistance avoiding late VAT submissions and payments, call us on 01384 376964
