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Commentary

V5.373 Default surcharge—surcharge liability notice (before 1 January 2023)

Part V5 Compliance, enforcement and appeals

This paragraph covers surcharge liability notices issued in connection with the default surcharge. The default surcharge applies to accounting periods starting before 1 January 2023. This paragraph therefore deals only with those periods.

For penalties for late payment of tax and late submission of VAT returns for periods starting on or after 1 January 2023, see V5.302B and V5.302C.

General HMRC power to serve surcharge liability notice

HMRC are empowered to serve a surcharge liability notice ('SLN') where a taxable person is in default in respect of a prescribed accounting period1. There appears to be no requirement for HMRC to serve an SLN. In Notice 700/50, para 5.1, it is implied that HMRC will not issue an SLN where the default does not involve a late payment:

'There's no liability to surcharge if you:

  1. Ìý

    •ÌýÌýÌýÌý submit a nil or repayment return late

  2. Ìý

    •ÌýÌýÌýÌý pay the VAT due on time but submit your return late

We will not issue a surcharge in these circumstances because there's

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Web page updated on 17 Mar 2025 13:57