Ellaleigh Book-keeping Services Limited
We are a small friendly accountancy and book-keeping firm based just outside bishop Auckland. Contact us for help with all your business needs.
We are a friendly local accountants and book-keepers for individuals and businesses. We provide services such as:
Book-keeping
Business Start ups
Accounts
Payroll
Auto-enrollments pensions
Vat
Self Assessment
CIS
Corporation tax
And for all you people out their that just want to leave the admin and paperwork to someone else while you focus on the core business, we provide day to day or week by wee
Hi everyone - just something that may be worth a read
HMRC has introduced a new penalty system for all VAT return periods starting on or after 1 January 2023 and payments due from 7 March 2023. It replaces the existing VAT default surcharge.
A snapshot of the changes
A quick summary is outlined below :
Late submission penalties - These work on a points-based system. For each VAT return submitted late, customers will receive a penalty point until they reach the penalty point threshold – at which stage they will receive a £200 penalty. A further £200 penalty will also apply for each subsequent late submission while at the threshold, which varies to take account of monthly, quarterly and annual accounting periods.
Late payment penalties - If a VAT payment is more than 15 days overdue, businesses will pay a first late payment penalty. If the VAT payment is more than 30 days overdue, the first late payment penalty increases and a second late payment penalty will also apply.
To help customers get used to the changes HMRC will not charge a first late payment penalty on VAT payments due on or before 31 December 2023, if businesses either pay in full or a payment plan is agreed within 30 days of the payment due date.
Payment plans - After 31 December 2023, if a customer proposes a payment plan within 15 days of payment being due and HMRC agrees it, they would not be charged a late payment penalty, provided that they keep to the conditions of the payment plan. Late payment penalties can apply where proposals are made after the first 15 days, but the agreement of the payment plan can prevent them increasing.
Interest calculations - HMRC has introduced both late payment and repayment interest, which will replace previous VAT interest rules. This brings the new regime in line with other taxes.
read more on the blow link if you wish too:
VAT penalties and interest Changes to VAT penalties and interest charges if you submit a VAT Return for an accounting period starting on or after 1 January 2023.
I'm just wondering if this is worth a read for vat registered guys out there! HMRC are changing the way they are dealing with penalties etc around late payments of vat... Best to be pre-armed with knowledge...
https://www.gov.uk/guidance/prepare-for-upcoming-changes-to-vat-penalties-and-vat-interest-charges?_ga=2.195797996.1761835939.1669382079-1318587626.1648458518&_gl=1*1tn2uep*_ga*MTMxODU4NzYyNi4xNjQ4NDU4NTE4*_ga_Y4LWMWY6WS*MTY2OTM4MjA3OC43MC4xLjE2NjkzODczMjYuMC4wLjA.
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Newcastle Upon Tyne
County Durham, NE11EE
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