The new VAT penalty regime took effect for VAT return periods commencing on or after 1 January 2023 hence the first monthly returns and payments affected by the penalties were due for filing and payment by 7 March 2023. In recent weeks, businesses who submitted their first affected return late will now have accrued penalty points and there may also be interest and penalty implications if VAT was also paid late.
HMRC has recently started to issue VAT penalty notices; appointed agents will also have been receiving copies of notices issued to their clients. Due to GDPR concerns, HMRC has removed the taxpayer details (names and addresses) from the agent copies to ensure these cannot be seen through the envelope window.
HMRC is working on a solution to resolve this in future but in the meantime, if an agent receives one of these notices, check the VAT registration number on the notice to find out which client is affected. Your client’s position can also be checked by accessing their details in your Agent Services Account.