Introduction of penalties for late submission of VAT returns delayed.

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.

Details of penalties for late submissions can be found here.