New Forest

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.

Latest Tweets

The UK government have launched a new website to help you find the support available to you to help with the cost of living.

Click the link to read more 👉 https://bit.ly/3bmUVA6

The Recovery Loan Scheme is soon coming to an end - the scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.

Click the link to read more 👉 https://bit.ly/3bA5Whx

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.