Commentary

V5.382 Penalties for failure to make returns, late submission, etc

Part V5 Compliance, enforcement and appeals

V5.382 Penalties for failure to make returns, late submission, etc

V5.382 Penalties for failure to make returns, late submission, etc

The provisions are contained in Finance Bill 2021, cl 112, Sch 231. They come into force on such day as the Treasury may by regulations appoint (as noted above, they are expected to apply in relation to VAT accounting periods commencing on or after 1 April 2022).

Given that VAT returns may be submitted on a monthly, three-monthly or annual basis (as well as for non-standard tax periods) it has been deemed necessary to allocate VAT returns for the various periods into 'groups'. Thus VAT returns fall into the following groups2:

  1.  

    •     returns made under SI 1995/2518, reg 50 (the annual accounting scheme – see V2.199A) and returns made under SI 1995/2518, reg 25(1)(c) (non-standard tax periods) for a period which exceeds 20 weeks and is the normal VAT accounting period for the person in question ('Group A returns')

  2.  

    •     returns made under SI 1995/2518, reg 25 other than those made under reg 25(1)(a), (b), ie returns for three-monthly tax periods, registration periods and returns made under SI 1995/2518, reg 25(1)(c) (non-standard tax periods) which exceed eight weeks but do not exceed 20 weeks and are the normal VAT accounting period for the person in question ('Group B returns')

  3.  

    •     returns made under SI 1995/2518, reg 25(1)(a) (monthly tax periods), and returns made under SI 1995/2518, reg 25(1)(c) (non-standard tax periods) which do not exceed five weeks ('Group C returns')

Failure to submit return on time—penalty points

Liability to penalty points

A person

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