uk penalties

UK introduces a new penalty regime as of 1 January 2023

January 31, 2023 in VAT rates

UK introduces a new penalty regime as of 1 January 2023

The new penalty regime works as a points-based system and applies to VAT accounting periods starting on or after 1 January 2023 only. This means that any VAT periods prior to 2023 will be subject to the previous penalty regime.

Under the new regime, late submission will trigger penalty points up to a set threshold.

When a taxpayer reaches the threshold, a GBP 200 penalty will apply. Additionally, an extra GBP 200 penalty will then apply to each subsequent late return.

This new points-based penalty regime aims to be more indulgent with taxpayers who miss a deadline occasionally whilst being stricter with VAT payers who repeatedly fail to submit their VAT return on time.

Recent posts

belgian vat
February 27, 2023
Belgium proposes to modernise its VAT compliance system
Read More
spain B2B
February 27, 2023
Spain to introduce B2B e-invoicing obligations
Read More
CESOP
February 27, 2023
CESOP and payment service providers’ new reporting obligations from 2024
Read More

Not sure where to begin?

Schedule a call with one of our VAT experts today