HMRC has asked us to share the below message about a growing area of confusion affecting some VAT‑registered businesses and their agents. HMRC is increasingly seeing VAT returns incorrectly submitted after the statutory due date when the 7th of the month falls on a weekend.
In these cases, some taxpayers (or their agents) are relying on third‑party websites and AI which erroneously state that HMRC allows VAT returns to be submitted on the next working day if the statutory deadline falls on a Saturday or Sunday. Unfortunately, this is incorrect and is resulting in late returns and late payments which is leading to late submission penalty points and late payment penalties.
HMRC is planning to share more information on this in May’s Agent Update but has asked us to share the below ahead of this.
“Key messages
- An increasing number of businesses and agents are submitting late VAT returns where the statutory due date falls on the weekend.
- They incorrectly think that the return can be submitted on the next working day. This is incorrect and results in late submission points or penalties.
- VAT return submission deadlines are fixed in law and do not move when they fall on a weekend.
- VAT returns can be submitted at weekends. If a business cannot submit at the weekend, it should submit before the due date.
- Agents should review any of their external guidance or website content and correct it where it suggests that VAT returns can be submitted on the next working day.”
The Institute reiterates the importance of members and businesses ensuring they only utilise reliable sources of information when assisting taxpayers with compliance work. Filing tax and VAT returns late based on erroneous information and guidance not only results in the taxpayer incurring penalties and interest, but it also damages the client relationship and undermines the important role that tax agents play in driving compliance with UK tax legislation.
LOADING...