PREPARING YOUR BUSINESS FOR SALE
May 12, 2022
The penalty reform for late payments has been delayed until 1 January 2023, confirms a statement by Lucy Frazer (The Financial Secretary to the Treasury).
There is currently a VAT default surcharge in place, which is incurred if the VAT return is submitted late or the payment for VAT due has not been received by the deadline.
Originally, the surcharge was due to be replaced by a reformed late submission and payment penalty in April 2022.
However, this change is being delayed in order for HMRC to implement the necessary changes to their online system.
In the statement, Lucy Frazer commented on the nine-month delay:
“This extra time allows HMRC to ensure the IT changes necessary for the new penalties and interest charges can be introduced as effectively as possible, ensuring a high standard of service to customers.”
When the reformed penalties come into force (on 1 January 2023) the changes will apply to VAT and Income Tax Self Assessment (ITSA).
The reform is set to include changes to the following:
Read the full statement on the penalty reform here.
For advice and support please contact Stephen Slater or Paul Gainford at RMT Accountants & Business Advisors on 0191 256 9500 or via the contact us form.