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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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. "