Commentary

Late filing and payment penalties and interest harmonisation

Budget Day 2021
Budget Day 2021 | Commentary

Late filing and payment penalties and interest harmonisation

Budget Day 2021 | Commentary

Late filing and payment penalties and interest harmonisation

A new regime is to be introduced for late filing and late payment penalties for VAT (and income tax self-assessment (ITSA)). For VAT the regime will apply for accounting periods beginning on or after 1 April 2022. The measure is no surprise as it has been developed through three consultations starting in 2016, but nothing more had happened since 2018.

Late filing or submission penalties

A points-based system will come into effect. When a taxpayer misses a submission deadline they will incur a point. Points accrue separately for VAT and for ITSA.

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