VATupdate

Changes to VAT penalty regime delayed until 2023

The government has announced plans to delay the introduction of penalties for late submission of VAT returns.

The reforms come into effect:

  • for VAT taxpayers from periods starting on or after 1 January 2023
  • for taxpayers in Income Tax Self Assessment (ITSA), from the tax year beginning 6 April 2024 for taxpayers with business or property income over £10,000 per year (that is, taxpayers who are required to submit digital quarterly updates through Making Tax Digital for ITSA)
  • for all other ITSA taxpayers, from the tax year beginning 6 April 2025

Sources

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