{"id":70572,"date":"2023-01-23T10:58:14","date_gmt":"2023-01-23T09:58:14","guid":{"rendered":"https:\/\/blog.hellotax.com\/blog\/?p=70572"},"modified":"2023-03-08T14:55:15","modified_gmt":"2023-03-08T13:55:15","slug":"uk-vat-penalties-in-2023","status":"publish","type":"post","link":"https:\/\/hellotax.com\/blog\/uk-vat-penalties-in-2023\/","title":{"rendered":"VAT penalties in UK in 2023"},"content":{"rendered":"\n<p>Upon registering for VAT, all a business needs to do is file a VAT return and pay the tax office. A brief description of the VAT points system and the latest penalty system in the United Kingdom is provided in this article.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2023\/01\/UK-VAT-points-1024x512.jpeg\" alt=\"\" class=\"wp-image-70580\" srcset=\"https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2023\/01\/UK-VAT-points-1024x512.jpeg 1024w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2023\/01\/UK-VAT-points-300x150.jpeg 300w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2023\/01\/UK-VAT-points-768x384.jpeg 768w, https:\/\/hellotax.com\/blog\/wp-content\/uploads\/2023\/01\/UK-VAT-points.jpeg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>On 1 January 2023, the new VAT points system was introduced. Late filing of VAT returns and late payment of VAT will be penalized separately, as well as interest on late penalties.<\/p>\n\n\n\n<p>In December 2022, specific <a href=\"https:\/\/www.gov.uk\/government\/collections\/vat-penalties-and-interest\" target=\"_blank\" rel=\"noopener\">guidance on fees<\/a> related to overdue penalties and VAT interest was issued.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-late-filing-of-vat-returns\">Late filing of VAT returns<\/h3>\n\n\n\n<p>VAT returns will be penalized based on penalty thresholds determined by a new points system.<\/p>\n\n\n\n<p>A business will lose one point each time it delays filing a return, until it reaches the penalty threshold and receives a \u00a3200 penalty. <\/p>\n\n\n\n<p>Furthermore, businesses will also be fined \u00a3200 for each subsequent late filing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-late-payment-of-vat\">Late payment of VAT<\/h3>\n\n\n\n<p>Payment of late fees early reduces penalty interest charges.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Payment of VAT owed 1-15 days late or the same payment plan will not be penalized.&nbsp;<\/li><li>If you are 16-30 days late, you will receive a first penalty of 2% of the VAT owed on the 15th day of late payment.&nbsp;<\/li><li>In the case of a 31-day late payment, or a payment plan, a 2% penalty is added to the 15-day penalty.&nbsp;<\/li><li>If the payment is over 31 days overdue, it must also be paid in addition to the first two fines. You will be charged another daily penalty of 4% per annum for the outstanding period.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-period-of-familiarization\">Period of familiarization<\/h3>\n\n\n\n<p>Until after 31 December 2023, you won&#8217;t be charged you a first late payment penalty to give you time to get used to the changes. This is provided that, within 30 days of your payment due date, you either:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Make a full payment<\/li><li>Arrange a payment plan<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-reset-of-points-to-zero\">Reset of Points to Zero<\/h3>\n\n\n\n<p>Under the following conditions, it is possible to set the points to zero:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Ensure that a business files its VAT return by the due date whenever a compliance period is due<\/li><li>Check that all outstanding tax refunds due to HMRC have been received<\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Our advice is to follow the regulations and always file and pay VAT on time in order to avoid any penalties. If you have any questions or need advice, please <a href=\"https:\/\/hellotax.com\/contact-us?button=header&amp;utm_medium=cpc&amp;utm_source=google&amp;utm_campaign=9937042056\">contact our experts<\/a>, who will be able to assist you with your VAT filings and HMRC correspondence. Besides VAT registration, calculations, and filings, <a href=\"https:\/\/hellotax.com\/\">hellotax<\/a> also provides tax-related support.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Upon registering for VAT, all a business needs to do is file a VAT return and pay the tax office. A brief description of the VAT points system and the latest penalty system in the United Kingdom is provided in this article. On 1 January 2023, the new VAT points system was introduced. Late filing [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":70580,"parent":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"yes","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5672],"tags":[],"class_list":{"0":"post-70572","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blog","8":"entry"},"acf":[],"modified_by":"Niki Stanev","_links":{"self":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts\/70572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/comments?post=70572"}],"version-history":[{"count":0,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/posts\/70572\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/media\/70580"}],"wp:attachment":[{"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/media?parent=70572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/categories?post=70572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hellotax.com\/blog\/wp-json\/wp\/v2\/tags?post=70572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}