Warning: Proposed repeal of default surcharge by FA 2009
From a date to be appointed, the default surcharge is due to be replaced.
The date when the new penalty will apply probably depends on HMRC’s progress with the computer-related issues of this change.
The penalty will try to encourage prompt filing and payment by imposing an escalating series of penalties, depending on the number of failures within a penalty period. Further penalties arise if there is a prolonged delay in filing returns or paying the VAT due.