{"id":756,"date":"2022-12-14T17:46:30","date_gmt":"2022-12-14T17:46:30","guid":{"rendered":"https:\/\/wearesapphire.co.uk\/\/accounting\/?post_type=insights&p=756"},"modified":"2024-04-02T17:51:00","modified_gmt":"2024-04-02T16:51:00","slug":"upcoming-changes-to-vat-penalties-and-interest-charges","status":"publish","type":"insights","link":"https:\/\/wearesapphire.co.uk\/accounting\/insights\/upcoming-changes-to-vat-penalties-and-interest-charges\/","title":{"rendered":"Upcoming changes to VAT penalties and interest charges"},"content":{"rendered":"

HMRC<\/a>\u00a0have announced some upcoming changes to VAT from 1st January 2023 that you need to be aware of. The changes will include new penalties and interest charges. For VAT periods starting on or after 1st January 2023, new penalties if you submit or pay VAT returns late will replace the default surcharge. There will also be changes to how VAT interest is calculated.<\/p>\n

These changes will affect everyone submitting VAT Returns for accounting periods starting on or after 1st January 2023. There will also be late submission penalty points and financial penalties for any nil payments or repayment VAT returns received late. This will work on a points-based system, whereby each late submission will receive one penalty point.<\/p>\n

Once a penalty threshold is reached, you will receive a \u00a3200 penalty and a further \u00a3200 penalty for each subsequent late submission.<\/p>\n

The late submission penalty points threshold will vary according to your submission frequency.<\/p>\n

Late submission penalties<\/strong><\/h3>\n\n\n\n\n\n\n\n
Submission frequency<\/strong><\/td>\nPenalty points threshold<\/strong><\/td>\nPeriod of compliance<\/strong><\/td>\n<\/tr>\n<\/thead>\n
Annually<\/td>\n2<\/td>\n24 months<\/td>\n<\/tr>\n
Quarterly<\/td>\n4<\/td>\n12 months<\/td>\n<\/tr>\n
Monthly<\/td>\n5<\/td>\n6 months<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

You will be able to reset your points back to zero if you:<\/p>\n