- New regulations on penalties for late VAT payment will take effect on December 4, 2024.
- These regulations amend the existing penalties rules that have been in place since January 1, 2023.
- HMRC can assess a second late payment penalty if tax remains unpaid 31 days after the due date, within a two-year assessment period.
- The new regulations allow HMRC to impose a second penalty even if the outstanding tax is not paid by the end of the two-year limit.
- A key change from the draft regulations is that having a time-to-pay agreement will not prevent HMRC from imposing the second late payment penalty.
Source: taxscape.deloitte.com
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.
