Penalties ― late submission and failure to submit returns

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This note sets out the points-based penalty regime that applies when a business fails to submit a VAT return or submits a return late. The rules come into force for VAT return periods that start on or after 1 January 2023 as part of the replacement of the ‘default surcharge’ regime.

For penalties associated with late payment of VAT, see the Penalties ― late payment of VAT guidance note.

See also De Voil Indirect Tax Service V5.382.

Late submission penalties ― the basics

For VAT return periods that start on or after 1 January 2023, a points-based penalty regime applies where a person fails to submit their VAT return on time.

Under this penalty regime, a business that fails to submit its return on time is awarded a penalty point. When the number of penalty points reaches a penalty threshold, then a financial penalty of £200 is issued.

The points threshold that triggers the penalty depends on the frequency with which VAT returns are due to be submitted.

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Trusts and Inheritance Tax

Gifts out of surplus income

Gifts out of surplus incomeA valuable exemption from inheritance tax (IHT) applies to gifts out of surplus income. This exemption applies only to lifetime gifts and is therefore a key part of lifetime planning. The exemption applies to both outright gifts and gifts into trust. Gifts which meet the

14 Jul 2020 11:48 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more

Value Added Tax

VAT registration ― change of VAT registration details

VAT registration ― change of VAT registration detailsVAT registered persons must keep their VAT registration details up to date and notify HMRC of any changes. Failure to notify HMRC by the relevant time could result in a penalty. For guidance regarding penalties for failure to notify please see the

14 Jul 2020 13:57 | Produced by Tolley Read more

Value Added Tax

Holding companies ― VAT status of activities

Holding companies ― VAT status of activitiesThis guidance note examines how to determine the VAT status of a holding company’s activities. In particular, it looks at:•when a holding company is or is not in business•if a holding company is in business, whether its activities are exempt or taxableThe

14 Jul 2020 17:13 | Produced by Tolley Read more

��˾��ҹ��