{"id":4506,"date":"2022-01-18T14:00:04","date_gmt":"2022-01-18T14:00:04","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=4506"},"modified":"2022-01-18T14:00:05","modified_gmt":"2022-01-18T14:00:05","slug":"penalty-reform-for-vat-delayed-until-january-2023","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/penalty-reform-for-vat-delayed-until-january-2023\/","title":{"rendered":"Penalty reform for VAT delayed until January 2023"},"content":{"rendered":"<p>The penalty reform for late payments has been delayed until 1 January 2023, confirms a statement by Lucy Frazer (The Financial Secretary to the Treasury).<!--more--><\/p>\n<p>There is currently a VAT default surcharge in place, which is incurred if the VAT return is submitted late or the payment for VAT due has not been received by the deadline.<\/p>\n<p>Originally, the surcharge was due to be replaced by a reformed late submission and payment penalty in April 2022.<\/p>\n<p>However, this change is being delayed in order for HMRC to implement the necessary changes to their online system.<\/p>\n<p>In the statement, Lucy Frazer commented on the nine-month delay:<\/p>\n<p>\u201cThis\u202fextra time allows HMRC to ensure the IT changes necessary for the new penalties and interest charges can be introduced as effectively as possible, ensuring a high standard of service to customers.\u201d<\/p>\n<p>When the reformed penalties come into force (on 1 January 2023) the changes will apply to VAT and Income Tax Self Assessment (ITSA).<\/p>\n<p>The reform is set to include changes to the following:<\/p>\n<ul>\n<li>Late payment penalties<\/li>\n<li>Time-to-Pay arrangements<\/li>\n<li>Interest rate harmonisation (to bring VAT in line with other tax regimes)<\/li>\n<li>Points-based penalties for late submission<\/li>\n<\/ul>\n<p>Read the full statement on the penalty reform <a href=\"https:\/\/questions-statements.parliament.uk\/written-statements\/detail\/2022-01-13\/hcws537\" target=\"_blank\" rel=\"noopener\">here.<\/a><\/p>\n<p><strong>If you require support or advice, contact our experts today. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The penalty reform for late payments has been delayed until 1 January 2023, confirms a statement by Lucy Frazer (The Financial Secretary to the Treasury).<\/p>\n","protected":false},"author":2,"featured_media":4508,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,28,52,123],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4506"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4506"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4506\/revisions"}],"predecessor-version":[{"id":4507,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4506\/revisions\/4507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4508"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}