- HMRC increased penalties for late VAT payments starting April 1, 2025.
- Penalty for 15-day late payments increased from 2 percent to 3 percent.
- Penalty for 30-day late payments increased to 3 percent on top of the 15-day penalty.
- Additional 10 percent per year penalty for payments late by 31 days or more.
- The measure aims to encourage timely payments and reduce the tax gap.
- Expected revenue increase from GBP 5 million in 2025-06 to GBP 125 million in 2029-30.
- No negative impact on those who pay on time; stricter penalties affect only late payers.
- The policy supports government efforts to ensure compliance and timely VAT payments.
Source: vatabout.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.
