VAT surcharges - resetting the clock

VAT surcharges - resetting the clock

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A few years ago before the new penalties regime kicked in, if a client had received the yellow surcharge letter, it used to be that if they filed and paid on time for the subsequent 12 months, that the penalty/surcharge clock would be reset again.

Can I just clarify that this was swept away about 2-3 years ago or does this still stand?

Sorry brain fog from working too many late nights catching up on work....... Thanks.

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By DMGbus
15th May 2012 13:25

VAT notice 700/50

A search "Default surcharge" on HMRC's website comes up with VAT notice 700/50 that deals with this subject matter.

It includes lots of information (too much to repeat here or quickly read through), however the following might be useful:

"

4.2 Special arrangements for small businesses

Special arrangements are in place if your taxable turnover is £150,000 or less to help when you first have difficulties paying your VAT on time. You will be sent a letter offering help and support rather than a Surcharge Liability Notice the first time you default. This is to help you sort out any short-term difficulties before formally entering the default surcharge system. If you default again within the following twelve months we will issue you with a Surcharge Liability Notice. "

 

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000105&propertyType=document

 

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By rockallj
15th May 2012 13:37

@DMGbus

Many thanks, very useful!

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