Removing Penalty Points: A Guide to Avoiding Penalties under the New System

• HMRC has introduced new penalty and interest rules for late returns and payments from 1 January 2023.
• On 4 January 2023, HMRC published guidance on how to remove penalty points to avoid a penalty.
• The penalty thresholds are 2 points for annual returns, 4 points for quarterly returns, and 5 points for monthly returns.
• Businesses can remove penalty points by completing a period of compliance and submitting all returns by the deadline.
• Businesses must also submit all outstanding returns for the previous 24 months.
• The guidance provides details on how these tests are calculated and applied.

Source: deeksvat.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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