From 1st January 2023, HMRC are replacing the default surcharge for late filing of VAT returns for a new penalty points regime.
The changes will affect everyone submitting VAT Returns for accounting periods starting on or after 1 January 2023. Any nil or repayment VAT returns received late will also be subject to late submission penalty points.
For each VAT Return submitted late you will receive one submission penalty point and once you reach the penalty threshold, you will receive a £200 penalty and an additional £200 penalty for each subsequent late submission. ￼
The late submission penalty points threshold will vary according to your submission frequency.
It is possible for businesses to reset their penalty points to zero if they:
- submit returns on or before the due date for the period of compliance
- make sure all outstanding returns due for the previous 24 months have been received by HMRC
Contact your usual adviser at Drummond Laurie if you have any questions on this or email email@example.com