Warning: Proposed repeal of default surcharge

For VAT, there is currently no standalone late submission penalty. Instead, the default surcharge is provided for at VATA 1994, s.59, 59A and 59B.

Default Surcharge is a combined late submission and late payment sanction.

For accounting periods beginning on or after 1 April 2022, it will be replaced by a new points-based late submission penalty regime (see 60-300) and, at the same time, new Late Payment Penalties (LPP) (60-400) with interest charges and repayment interest harmonised to bring VAT into line with other tax regimes, including Income Tax Self Assessment (ITSA).

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