The current VAT penalty regime was due to be replaced from April 2022, with a move to a points-based late filing regime and the application of late payment penalties being proposed, however these changes have been delayed and are now due to implemented with respect to accounting periods beginning on or after 1 January 2023. This means they will no longer come into effect at the same time as the extension of MTD to all VAT registered traders, preventing businesses from having to manage multiple changes at the same time.
Source: thevatpeople.co.uk
