HMRC are reminding businesses to file their VAT returns and pay on time before new penalties are applied.
The late payment penalties and points-based late submission penalties were introduced from 1 January 2023, replacing the VAT default surcharge, and apply to accounting periods that start after that date.
The penalties for late VAT returns also apply to businesses that submit nil returns and repayment returns. Changes have also been made to how interest is calculated.
The first monthly returns and payments affected by the penalties are due by 7 March 2023.