HMRC Changes To VAT Penalties And Interest Charges

20th October 2022

New simplified penalties will start from next year for businesses who are late in submitting or paying VAT Returns.

For VAT periods starting on or after 1 January 2023, the default surcharge will be replaced by these new penalties. At the same time, we're also making changes to how VAT interest is calculated.

If your business submits a nil or repayment VAT Return, you will need to make sure it's submitted on time. Unlike the current default surcharge, under the new late submission penalties, if a nil or repayment return is submitted late penalty points and a £200 fine may apply.

More information about the upcoming changes to VAT penalties and VAT interest charges is available.
See https://www.gov.uk/guidance/prepare-for-upcoming-changes-to-vat-penalties-and-vat-interest-charges