Global Daily Tax News, HMRC Seeking Feedback On New VAT Penalties Regime, (Jan 25, 2024)

HM Revenue and Customs is seeking input on its new VAT penalty regime.

The agency has enlisted the assistance of an independent research agency, Verian, to carry out research to understand the views of VAT registered businesses towards the changes in the UK's penalty regime.

Taxable persons will be contacted from now until March 25, 2024, with any answers to be confidential and used for research purposes only, HMRC said.

For VAT accounting periods starting on or after January 1, 2023, errant taxpayers are charged late payment interest on overdue payments from the first day a payment is overdue to the day it is paid in full.

A late payment penalty applies where an amount remains outstanding after 15 days. The amount is less if paid promptly.

Interest is chargeable on all late payments where VAT is due, for instance following: a VAT return; an amendment or correction of a return; a VAT assessment made by HMRC; or a missed VAT payment on account.