CH193420 - Penalty reform - penalties for failure to pay VAT on time from 1 January 2023: other penalty issues: interaction with other penalties

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”

There is no legal provision to reduce the penalties for failing to pay tax on time by the amount of other penalties that may be imposed on that tax liability.

The legislation says that no account must be taken of any penalties for failure to pay tax when considering

• inaccuracy penalties (FA07/SCH24/PARA12(2))
• penalties for failure to notify and certain VAT and Excise wrongdoing (FA08/SCH41/PARA15(1))

FA21/SCH26/PARA15