{"id":24569,"date":"2023-03-13T09:34:10","date_gmt":"2023-03-13T09:34:10","guid":{"rendered":"https:\/\/smh.group\/?p=24569"},"modified":"2023-03-13T09:34:10","modified_gmt":"2023-03-13T09:34:10","slug":"new-points-based-penalties-for-late-vat-returns","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/new-points-based-penalties-for-late-vat-returns\/","title":{"rendered":"New points-based penalties for late VAT returns"},"content":{"rendered":"

A new points-based penalty applies to late VAT returns for VAT periods beginning on or after 1 January 2023. The first monthly return to be affected was the one due by 7 March, with the first affected quarterly return due 7 May.<\/strong><\/p>\n

This new returns penalty regime joins the completely separate new penalties for late payments in replacing the old system of default surcharges.<\/p>\n

The points-based penalty revolves around a points threshold and a compliance period. These vary according to the length of the VAT period:<\/p>\n\n\n\n\n\n\n
VAT period<\/strong><\/td>\nPoints threshold<\/strong><\/td>\nCompliance period<\/strong><\/td>\n<\/tr>\n
Monthly<\/td>\n5<\/td>\n6 months<\/td>\n<\/tr>\n
Quarterly<\/td>\n4<\/td>\n12 months<\/td>\n<\/tr>\n
Annually<\/td>\n2<\/td>\n24 months<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


\nPoints threshold<\/strong><\/h2>\n

All traders start on zero points, including those who are on a default surcharge. One penalty point is then charged for each late VAT return, even for returns with a nil liability or where a repayment is due.<\/p>\n