- 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.
