“The changes to the VAT penalty regime are now in force. The regime is automated as many processes adopted by HMRC are these days. We have found that if there is a problem with a scheduled payment or VAT or submission of a return this problem may trigger a penalty point. This penalty point may be avoided if the payment or submission is processed a few days earlier than the deadline day.“
Nigel Holland
Changes to VAT penalties and interest charges if you submit a VAT Return for an accounting period starting on or after 1 January 2023.
Changes to VAT penalties and interest
For VAT accounting periods starting on or after 1 January 2023 there are new penalties for VAT Returns that are submitted late and VAT which is paid late. The way interest is charged has also changed.
The changes aim to simplify and separate penalties and interest.
You can also read about changes to VAT penalties and interest in Welsh.
- Penalty points and penalties if you submit your VAT Return late
- 1 March 2023
- Guidance
- Remove penalty points you’ve received after submitting your VAT Return late
- 15 February 2023
- Guidance
- How late payment penalties work if you pay VAT late
- 10 March 2023
- Guidance
- Late payment interest if you do not pay VAT or penalties on time
- 4 January 2023
- Guidance
- Repayment interest on VAT credits or overpayments
- 28 February 2023
- Guidance
