CH192150 - Penalty reform - penalties for failing to file VAT returns by the due date for periods from 1 January 2023: liability to penalty points: overview

NB: “These rules currently only apply to VAT with effect from 1 January 2023, for VAT periods starting on or after that date. You must check the date from which these rules apply for the tax or duty you are dealing with”

Whenever a taxable person fails to submit a VAT return on time, and HMRC is within the relevant time limits- see CH192110, a penalty point may be awarded.

Penalty points expire after a relevant amount of time has passed, see CH192200, or certain conditions are met, see CH192210.

Any further penalty points awarded continue to add up until the total reaches the relevant maximum see CH192270 and a financial penalty can be charged for this and any further failures, see CH192280.

A taxable person can appeal against the award of a penalty point or a financial penalty that results from the award of those penalty points, see CH192320.