HMRC sounds warning on new VAT penalties

    Simpson Wood
    9th March 2023
    Home » Blog Posts » HMRC sounds warning on new VAT penalties

    HMRC is reminding VAT-registered businesses to file their VAT returns and pay on time ahead of new penalties being applied.

    The tax authority says that the new penalties will be ‘fairer and more proportionate’ for businesses who submit their VAT returns or pay their VAT late.

    The first monthly returns and payments affected by the penalties are due by 7 March 2023.

    The late payment penalties and points-based late submission penalties were introduced from 1 January 2023, replacing the VAT default surcharge, and apply to accounting periods which start after that date.

    The penalties for late VAT returns also apply to businesses that submit nil returns and repayment returns. Additionally, changes have been made to how interest is calculated.

    Paul Riley, Director of Tax Administration at HMRC, said:

    ‘Our aim is to help customers get things right before monetary penalties are applied; a points-based system for late VAT returns will not punish the occasional error.

    ‘We are contacting 2.5 million VAT-registered businesses about the changes and will continue to support customers to help them manage their tax affairs and payments.’

    Internet link: GOV.UK

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Autumn Statement Summary 2023

    The Chancellor, Jeremy Hunt, delivered his Autumn Statement on Wednesday 22 November. Our summary boils his 110 different proposals down to a concise report of the key points. The Autumn…

    Latest guidance for employers

    HMRC has published the latest issue of the Employer Bulletin. The October issue has information on various topics, including: Please contact us for help with tax matters. Internet link: Employer Bulletin

    Hybrid and remote working here to stay

    A large majority of UK business leaders plan to offer employees remote and hybrid working in the long-term, according to the Institute of Directors (IoD). A survey conducted by the IoD…

    Many firms still facing recruitment problems

    Many UK firms are still facing hiring issues as a result of challenging economic conditions, according to a report from the British Chambers of Commerce (BCC). 73% of firms surveyed by…

    Inflation rate holds steady as UK economy grows

    The UK’s rate of inflation held steady in September while the nation’s economy grew the month before, according to the latest figures from the Office of National Statistics (ONS). The…