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Penalty Reform for VAT

13 January 2022

Proposing MP
South East Cambridgeshire
Type
Written Ministerial Statement
Department
Treasury

At a Glance

Issue Summary

The statement addresses the reform of VAT penalties and interest charges.

Action Requested

I am announcing that the reforms for VAT businesses will now be implemented on 1 January 2023, nine months later than initially planned, to ensure well-tested systems and good customer service.

Key Facts

  • The Finance Act 2021 legislated to reform penalties for late submission and payment of tax from April 1, 2022.
  • HMRC is committed to being a digitally advanced tax authority.
  • The reforms will be introduced on January 1, 2023.
Assessment & feedback
Summary accuracy