Sample newsletter
Updated 21 February 2023
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New VAT late submission, late payment penalties and interest charges
As part of HMRC鈥檚 ambition to become a modern, trusted tax authority, it has changed the way penalties are issued for submitting late VAT returns and paying VAT late, which affects all VAT registered businesses from 1 January 2023.
贵辞谤听VAT periods starting on or after 1 January 2023, HMRC replaced the default聽surcharge with separate penalties for late returns and late payment of VAT.聽At the same time, HMRC introduced a new approach to VAT 颈苍迟别谤别蝉迟.鈥�
The new points-based system for late submissions is designed to be more lenient for the聽occasional slip-up, whilst still penalising those who repeatedly fail to comply. If you do submit late (which also applies if you submit a nil or repayment return late), you could face penalty points and a聽拢200 fine.
Late payment penalties are charged at different rates based on when payment is received. This means the penalty is more proportionate to the length of time a payment is聽outstanding - the sooner you pay, the lower the penalty.鈥�
HMRCalso introduced late payment interest, which means that you鈥檒l be charged interest from the date your payment is overdue, until the date you pay in full.
HMRC have discontinued repayment supplement and instead introduced repayment聽interest. Customers who make a repayment claim will be paid repayment interest from聽the day after the due date, or the date of the submission (whichever is later), to the date the聽repayment is made.
For more information, go to VAT penalties and interest.