The government has announced that the introduction of penalties for late submission of VAT returns will be delayed.
The new penalty system was due to come into effect from 1 April 2022 but this has now been put back by nine months until January 2023.
The financial secretary to the Treasury, said: ‘In Finance Act 2021, the government legislated to reform penalties for late submission and late payment of tax, initially from 1 April 2022, and to align interest charges for VAT with other major taxes.
‘Today, I am announcing that these changes for VAT businesses will now be introduced nine months later, on 1 January 2023.