HMRC are introducing a new VAT Penalty system starting on or after 1st January 2023 which may affect you.

Here’s what you need to know:

  • Late Submission Penalities – These work on a points-based system, each VAT return submitted late, customers will receive a point.
  • Late Payment Penalities – Overdue VAT payments face escalating late payment charges.
  • Payment Plans – HMRC will help businesses that cannot pay their VAT bill in full.
  • Interest Calculations – HMRC has introduced both late payment and repayment interesting, which replace previous interest rules.

For full details on everything you need to know, please get in touch with us.