HMRC delays new VAT penalty rules
The first step towards alignment of VAT and direct tax penalties was due to take place in just two months but yesterday the government announced a delay. What’s the full story?
HMRC’s original timetable for the harmonisation of its late filing penalty and late payment interest regimes across most direct and indirect taxes was due to start on 1 April 2022 with the scrapping of the VAT surcharge rules. Following the announcement by the Treasury on 13 January this has been put back by nine months until 1 January 2023.
When the new rules take effect late filing penalties will be charged using a points system. Points will be added to a taxpayer’s record for each late filing and penalties will escalate the more points are racked up. For late payments there will be varying charges according to how late each payment is.
HMRC’s updated guidance about the new penalty and interest rules can be viewed here and here.
Related Topics
-
Deadline to pay Class 1B NI
-
Company owners' personal tax affairs under scrutiny
Company owners are being urged to check their personal tax affairs as a new compliance campaign focuses on transactions between limited companies and the people who control them. Loans, personal expenses and the use of company assets are among the areas attracting attention. Could you have overlooked a tax liability?
-
HMRC speeds up National Insurance refunds
HMRC has confirmed that it is using a new automated process to speed up National Insurance refunds. Where its records suggest that someone may have overpaid, HMRC will write to them asking them to check their employment and contribution details before any refund is processed. Could you be due money back?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.