HMRC Publish Guidance on New Penalty Regime for Late Returns

HMRC letter and coins
Posted 2021 by Jane Loxton

Finance Act 2021 introduced a new regime for late VAT returns that will apply to VAT periods commencing on or after 1 April 2022 and to other returns at a later date.

HMRC have now published detailed guidance on the new rules. The reforms come into effect:

  • for VAT taxpayers from periods starting on or after 1 April 2022
  • for taxpayers within MTD for Income Tax Self-Assessment (ITSA), from the tax year beginning 6 April 2024
  • for all other ITSA taxpayers, from the tax year beginning 6 April 2025

The new regime will be a points-based system and will operate in a similar way to motoring penalties in that the points will elapse after a period of time depending on the regularity of the returns.

Next steps

If you have VAT questions, or need help preparing or submitting your VAT or Self Assessment Tax returns, please do get in touch.

For details see: Penalties for late submission – GOV.UK (