Finance Act 2021 introduced a new regime for late VAT returns that will apply to VAT periods commencing on or after 1 April 2022 and to other returns at a later date.
HMRC has now published detailed guidance on the new rules. The reforms come into effect:
- for VAT taxpayers from periods starting on or after 1 April 2022
- for taxpayers within MTD for Income Tax Self-Assessment (ITSA), from the tax year beginning 6 April 2024
- for all other ITSA taxpayers, from the tax year beginning 6 April 2025
The new regime will be a points-based system and will operate in a similar way to motoring penalties in that the points will elapse after a period of time depending on the regularity of the returns.
For details see: Penalties for late submission – GOV.UK
It is recommended that you authorise a tax specialist to handle your tax affairs and deal with HMRC on your behalf. This will ensure that all deadlines are met and that you are not paying more tax than you need to.
At Beavis Morgan, our diverse team of tax professionals are committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to maximise tax savings is made known to you, and by restructuring your affairs in a tax effective and efficient way.