Prepare for upcoming changes to VAT penalties and VAT interest charges
1st January 2023
Default surcharge changes
For VAT periods beginning after 1 January 2023, the long-standing default surcharge regime applicable to the late submission of returns and/or the late payment of associated VAT will be replaced by a new penalty regime.
This will operate a points-based system where points are issued for late filing and upon reaching a threshold a fixed penalty of £200 will be levied.
Penalties in respect of late payments will be calculated when payments are outstanding over 15 days and then a daily rate will be applied to any balances outstanding beyond 30 days.
HMRC has indicated it will not charge the 15 – 30-day penalty for late payments throughout 2023 (unless any payment is more than 30 days late), to enable taxpayers to get used to the changes.
For more information about VAT penalties, please click the button below.
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