Latest updates on VAT penalties. At the beginning of 2022, HMRC reported that the original VAT penalties will be replaced by new late submission penalties and interest on late payments on 1 January 2023 moved from the originally decided date of 1 April 2022 to allow the organization enough time to make the changes.To keep the taxpayers updated, HMRC has released new guidelines with the latest information on how these penalties will be worked out and applied.
A slight relief will be provided to the taxpayers during the period of familiarization with the latest rules. It announced, “To allow you time to get familiarized with the changes, we will not be charging a first late payment penalty for a whole year, from 1 January 2023 until 31 December 2023, granted you pay in full during 30 days of your payment due date.”HMRC has come up with new rules regarding the penalty regime, which will be applicable to VAT accounting periods starting on or after 1 January 2023. It announced that taxpayers will be given leverage of the penalty being waived off during the familiarization period i.e the first year of the latest rules.
