HMRC have updated their guidance on VAT late-payment penalties to include details of the penalties applicable for VAT payments that are overdue by 31 days or more (ie the second penalty). A new example illustrates the penalties for payments outstanding six days before the two-year assessment period time limit expires picking up one of the more topical issues surrounding the new penalties regime: SI 2024/1153 made the necessary changes to allow HMRC to assess the second late-payment penalty before the tax had been paid in full by the end of the two-year period (addressing a potential avoidance loophole).
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HMRC have updated their guidance on VAT late-payment penalties to include details of the penalties applicable for VAT payments that are overdue by 31 days or more (ie the second penalty). A new example illustrates the penalties for payments outstanding six days before the two-year assessment period time limit expires picking up one of the more topical issues surrounding the new penalties regime: SI 2024/1153 made the necessary changes to allow HMRC to assess the second late-payment penalty before the tax had been paid in full by the end of the two-year period (addressing a potential avoidance loophole).
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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