On 4 January 2023, HMRC published five guidance pages relating to the new penalty regime for late submission and payment of VAT returns, as well as late payment and repayment interest. This new guidance is aimed at taxpayers and their agents. 

• Penalty points and penalties if you submit your VAT Return late
• Remove penalty points you’ve received after submitting your VAT Return late
• How late payment penalties work if you pay VAT late
• Late payment interest if you do not pay VAT or penalties on time
• Repayment interest on VAT credits or overpayments

HMRC’s internal manuals on this topic are aimed at HMRC officers but are freely available. They are listed below.

• CH192000 - Penalty reform: penalties for failing to file VAT returns by the due date for periods from 1 January 2023: contents - HMRC internal manual
• CH193000 - Penalty reform: penalties for failure to pay VAT on time from 1 January 2023
• CH140000 - Interest

HMRC is running a webinar on the changes, aimed at businesses, on 17 February 2023. A short video on the changes is available on HMRC’s YouTube channel.

Feedback on the new guidance would be welcome. Please send it to Ed Saltmarsh.

Further reading for ICAEW or Tax Faculty members

• TAXguide 03/22: changes to VAT penalties and interest charges