Late VAT Returns: New consequences
23rd November 2022
As VAT repayment traders, farmers have long enjoyed the privilege of being able to submit their VAT returns late with impunity. Beware. For VAT Returns for periods beginning after 1 January 2023 late submission will have consequences, even for those due a refund. Each late return will attract a point and, for traders submitting quarterly returns, once four points have been amassed, a £200 penalty will be charged. Thereafter each late return will attract a further £200 penalty. Points can be extinguished by timely submission of four consecutive quarterly VAT returns. For those submitting monthly VAT returns, five points is the trigger for penalties but points can only be cancelled by submitting six consecutive VAT Returns on time.
