CH192270 - penalty reform: penalties for failing to file VAT returns by the due date for periods from 1 January 2023: liability to financial penalties: overview

NB: “These rules currently only apply to VAT for VAT periods starting on or after 1 January 2023. These rules will come into force for other tax regimes at a future date. You must check the date from which these rules apply for the tax or duty you are dealing with”

A taxable person continues to accumulate penalty points for each submission failure until they reach the maximum for the relevant group of returns. Once this maximum is reached, they are liable to a financial penalty of £200. All subsequent failures to submit a return on time will result in a liability to further financial penalties while remaining at their maximum penalty points total.

FA2021 SCH 24 para 15