This paragraph covers the penalty regime for failure to make payment on time which applies for VAT return periods starting on or after 1 January 2023.
This represents the second part of the replacement of the default surcharge regime (introduced at V5.371). The first part relates to penalties for failure to make returns, late submission etc. and is covered in V5.302B.
Penalties for failure to make payment on time—overview
The provisions described in this paragraph are contained in FA 2021, s 117, Sch 26.
In outline, the regime provides for:
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•ÌýÌýÌýÌý an initial penalty linked to the amount of VAT outstanding at the due date, unless payment is made within 15 days of that date, or the '15 day time to pay condition' is met
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•ÌýÌýÌýÌý an increased penalty linked to the amount of VAT outstanding at the due date, unless payment is made within 30 days of that date, or the '30 day time to pay condition' is met
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Web page updated on 17 Mar 2025 13:37