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Construction, Land and Property

VAT penalties delayed

08/03/2022

HMRC have announced that the planned alignment of self-assessment and VAT systems for penalties will now take place on 1 January 2023 not 1 April 2022.

The new penalty regime is likely to see a substantial reduction in VAT penalties for businesses caught at the wrong end of the default surcharge regime. However, this news will mean that Default Surcharges will continue to be applied throughout 2022.

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