HMRC’s fact sheet on MTD VAT penalties provides long overdue guidance on the penalties that apply to MTD VAT.
The fact sheet covers the filing method penalty that can be applied to businesses that fail to sign up to MTD VAT and continue to file their VAT return, other than using MTD functional compatible software. ICAEW’s Tax Faculty understands that HMRC will start to charge this penalty once all VAT records have been transferred to its new database later this year.
The general regulatory penalty that can be applied for failing to comply with MTD digital record keeping requirements (including the requirement for digital links) is also highlighted.
The fact sheet does not cover default surcharge or the new points based late submission and payment penalty system that will apply from January 2023.
Further detail is available in ICAEW’s guidance MTD for VAT penalties.
Tax Faculty
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
More support on tax
ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.
Sign up for TAXwireJoin the Tax FacultyThe future of tax after COVID
As digital technologies transform society, the UK government is grappling with balancing the books while ensuring its tax system is fit for purpose. Join us as we take a look at the issues and challenges facing the tax system.
Read moreMore from the Tax Faculty
Latest news
TAXwire
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Practical guidance
TAXline
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Technical support
Webinars
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.
