New penalty regime for late payment of VAT and late filing of VAT returns
The new penalty regime was due to be introduced on 1 April 2022, however this has now been delayed until 1 January 2023. The new regime will replace the current default surcharge regime. Taxpayers will receive a point every time they miss a submission deadline. HMRC will notify them of each point. At the relevant threshold of points, a financial penalty of £200 will be charged and the taxpayer will be notified. When a taxpayer has reached their threshold, a penalty will be charged for that failure and every subsequent failure (but the points total will not increase further). Points will have a lifetime of two years. The penalty thresholds will be as follows:
- Annual submission – penalty threshold 2 points
- Quarterly submission – penalty threshold 4 points
- Monthly submission – penalty threshold 5 points.
For more information, please click here.
Written 14 January 2022.