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
- HMRC Policy paper Penalties for late payment and interest harmonisation
- Policy paper Interest harmonisation and penalties for late submission and late payment of tax
- HMRC Policy paper Penalties for late submission
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