The new VAT penalty regime has now come in announcing a new penalty point system and penalties for late VAT returns.
The new system states the following:
- A single penalty point will be issued for a late submission.
- Once the business has exceeded a points threshold for multiple missed returns. A flat penalty of £200 will be imposed for each late return.
- Late payment penalty for VAT liabilities will be in the form of a two-part penalty, the first charge will be imposed at 2% of the outstanding tax if the tax due on the return remains unpaid 15 days after its initial due date.
- If any of the liability is unpaid after 30 days, the penalty increases to 4% of the liability outstanding at that point.
- The 4% charge is a daily penalty starting from 31 days after the initial due date until the business pays the liability in full.
- Late payment interest, which is 2.5%, will be payable from the due date until the date full payment is received by HMRC.
To avoid late penalties make sure you are aware of the key dates for VAT returns and payments, please see the table below.
| VAT Quarter | Submission Date | Payment Date |
|---|---|---|
| Jan – Mar,Apr – Jun,Jul – Sept,Oct – Dec | 7th May,7th Aug7th Nov 7th Feb | 7th May7Th Aug7th Nov7th Feb |
| Feb – Apr May – Jul,Aug – OctNov – Jan | 7th June7th Sept7th Dec7th Mar | 7th June7th Sept7th Dec 7th Mar |
| Mar – MayJun – Aug Sept – Nov Dec – Feb | 7th July7th Oct7th Jan7th Apr | 7th July7th Oct 7th Jan7th Apr |
HMRC VAT liability payment details, via fast payment, CHAPS or bacs:
| Sort Code | Account Number | Account Name |
|---|---|---|
| 08 32 00 | 11963155 | HMRC VAT |
The reference is your 9-digit VAT registration number.
There is an extra few days for payment if you opt-in to pay via direct debit, we recommend this to eliminate the error of late payment.
If you are struggling to meet VAT deadlines contact our business services team who offer VAT review services, giving you one less deadline to worry about.
Contact us on 01223 810100 or email us at help@cklg.co.uk
