VATupdate

Share this post on

Removing Penalty Points: A Guide to Avoiding Penalties under the New System

  • 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.

Sponsors:

VAT news
VAT news

Advertisements: