The newly introduced penalties have been in effect since 1 January 2023, these changes are set to impact those SME businesses who are not prepared.
Default Surcharges replaced by separate penalties
For VAT accounting periods beginning from 1 January 2023, the 2%, 5%, 10% & 15% default surcharge regime was replaced with a ‘points system’:
- Each VAT return submitted late will result in one late submission penalty point
- Once a penalty threshold is reached, a £200 penalty and a further £200 penalty for each subsequent late submission will be applied
- The late submission penalty points threshold will vary according to your submission frequency
Source Mazars
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