Updated October 2026: late payment penalty and interest rates revised for the increases that took effect in April 2025. The VAT penalty and interest rules changed for VAT return periods starting on or after 1 January 2023. The Default Surcharge was replaced by separate penalties for late
Guide to VAT Penalties
Updated October 2026: corrected and updated for the current VAT penalty rules. For VAT return periods starting on or after 1 January 2023, HMRC introduced a new penalty system that replaced the old Default Surcharge. There are separate penalties for submitting VAT returns late and for paying VAT
Making Tax Digital for VAT: a guide to the penalties
Changes to VAT penalties and interest charges if you submit a VAT Return for an accounting period starting on or after 1 January 2023. For VAT accounting periods starting on or after 1 January 2023 there are new penalties for VAT Returns that are submitted late and VAT which is paid late. The way
Reverse Charge VAT – Purchases of business-to-business (B2B) services from overseas suppliers
Purchases of business-to-business (B2B) services from overseas suppliers are subject to the reverse charge procedure. This means that the UK recipient of the service is liable to account for VAT on the supply, even if the supplier is not VAT registered in the UK. The reverse charge applies to
Reverse Charge For VAT – Construction Industry In The UK
In the UK, the reverse charge VAT applies to supplies of specific goods and services within the construction industry. It was implemented on 1st March 2021 and applies to businesses registered for VAT in the UK. Here's how reverse charge VAT works in the UK Applicable Transactions The reverse charge
Input tax when VAT paid on goods and services received before VAT registration
Before a business is registered for Value Added Tax (VAT) in the UK, the VAT paid on goods and services received cannot be considered as input tax. However, once registered, the VAT paid before registration can be treated as input tax if certain conditions are met. For goods The goods were supplied
How To Issue Sales Invoices Whilst You Are Waiting For Your VAT Number
When you apply for VAT registration, there will be a period of overlap between submitting your application and receiving your VAT number from HMRC. During this time, you are not allowed to charge or display VAT on your invoices. However, you are still required to pay the VAT amount to HMRC for any