We aim to periodically share with you updates which you will hopefully find useful.
New VAT Penalty Regime
Changes are coming to the way in which VAT is administered by HMRC. A new points based penalty regime is around the corner. See below a summary of the changes, but rest assured we are here, as ever, to help make sure you remain compliant:
You will be penalised if the VAT return is late and/or the payment is late, regardless if the VAT is a refund or is nil.
Late Submission of return
Late payment of return
Arranging a payment plan (Time to Pay) with HMRC will result in the penalty charge being suspended. – So if you can’t pay straight away, call to arrange a plan!
HMRC will notify the customer of both penalties separately:
|
Days after payment due date |
Penalty charge |
First Penalty |
0 to 15 |
No Penalty payable |
|
16 to 29 |
Penalty calculated at 2% of what was outstanding at day 15 |
|
30 |
Penalty calculated at 2% of what was outstanding at day 15
Plus 2% of what is still outstanding at day 30 |
Second Penalty |
Day 31 plus |
Penalty calculated as a daily rate of 4% on APR for the duration of outstanding balance. |
Coronavirus / Covid-19
There is lots of guidance being made available for businesses and employers in the wake of the Coronavirus / COVID-19 outbreak in the UK. You may find selected pages below helpful:
For everyone:
The above link contains information on:
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
Further specific guidance for employers:
Further specific guidance for employees:
There is a dedicated Coronavirus / COVID-19 HMRC Helpline you can call if you have any issues keeping up with tax liabilities or other financial difficulties as a result of the current situation:
0800 0159 559