What happens if I submit my VAT return late? Watch our video for some useful guidance.
HMRC will record a default on your account if you miss your submission deadline or you fail to make a payment on time and you will enter a ‘surcharge period’ of 12 months. If you default for a second time within this 12 month period the surcharge period is extended for a further 12 months and you may have to pay a fine on top of the VAT you owe. This fine is based on a percentage of the VAT outstanding and increases every time you default.
Surcharges can be as high as 15% of your annual turnover. Therefore, don’t miss the deadlines!
If you deliberately understate or overclaim on your VAT return, HMRC can also charge you a penalty of 100% of your tax. Any errors to your VAT return must be reported to HMRC.
If you would like any more information, please feel free to get in touch.