HMRC Publish Guidance on New Penalty Regime for Late Returns
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 have 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 more information, click here.
If you have any questions on the above please don't hesitate to contact us.
Please note that this update is correct as of the 4th October 2021.