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    VAT

    VAT Penalties

    How VAT penalties work under the points-based system that started in January 2023, and how to avoid surcharges.

    VAT late filing penalties

    Since January 2023, late VAT returns work on a points-based system. Here is how points accumulate and when they trigger a £200 penalty.

    5 min read

    VAT late payment penalties

    VAT late payment penalties stack: 2% at 15 days, 2% more at 30 days, then daily 4% interest after 30 days.

    5 min read