New VAT penalties for late payment of VAT and late submission of VAT returns took effect from 1 January 2023. The new penalty regime applies to VAT return periods beginning on or after 1 January 2023 if a return is filed late and/or a payment is made late in respect of periods affected.
A form of soft landing is being provided by HMRC such that a first late payment penalty will not be charged during 2023 as long as the business pays in full within 30 days of the payment due date.