VAT – Penalty Points

From the 1st of January 2023, penalty points will be applied for late submission of VAT returns.

If your accounting period is on or after 1st January 2023, you might want to read below.

Key points summarised below:

1. Submit return on time – returns that are late are awarded a penalty point each time until threshold is breached
2. Accounting period – threshold – quarterly (4), monthly (5) or annually (2)
3. Penalty – £200 for reaching threshold
4. Further penalty – subsequent late returns receive a £200 penalty
5. Exemptions – Your first and final VAT returns will not attract a penalty. Other “one-off” returns that are of a different accounting period will also be excluded.
6. Appeals – Always a very tricky affair and must meet certain thresholds. HMRC expects appellants to have a “reasonable excuse” for the appeal to even be considered.

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