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Home / De-Voil /Part V5 Compliance, enforcement and appeals /Division V5.3 Penalties /Failure to submit VAT returns and pay VAT on time (before 1 January 2023) / V5.381 Default surcharge—payments on account (poa) scheme (before 1 January 2023)
Commentary

V5.381 Default surcharge—payments on account (poa) scheme (before 1 January 2023)


Part V5 Compliance, enforcement and appeals

This paragraph covers the interaction of the payments on account scheme 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.

Liability of PoA trader to default surcharge

A person who is required to make payments on account1 will become liable to a default surcharge where2:

  1. Ìý

    •ÌýÌýÌýÌý the person has been served with a surcharge liability notice

  2. Ìý

    •ÌýÌýÌýÌý the person is in default in respect of a prescribed accounting period

  3. Ìý

    •ÌýÌýÌýÌý that prescribed accounting period falls within the surcharge liability period specified in the notice, and

  4. Ìý

    •ÌýÌýÌýÌý the aggregate value of defaults within that prescribed accounting period exceeds zero

When a PoA trader is in default

A person is in default where:

  1. Ìý

    •

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Web page updated on 17 Mar 2025 13:39