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Hi guys, I have a burning question which I have asked multiple times from ACCA tutor here, but they tend to no want to provide a response.
My exam is tomorrow already and I would like if any could please help clarify. :When a company is late with submitting a VAT return on time , it will be charged surcharge charge penalty of up to 15% in the 4th default period.
However, what happens if the company is still late (let’s say 6th quarter following each other) with submitting the VAT returns,and it has already been charged the 4th default penalty of 15%?
Do we start the surcharge period all over again? If yes, do we then treat the first default in the new period (I.e. the 6th default) as “a HMRC notice period” and thus no penalty?My understanding is that, The basic penalty of 15% on the outstanding VAT liability will still be applicable, for all the subsequent quarters after 4th quarter.
This is because the 15% penalty is for “Fourth or MORE” late return/payment.
The surcharge period will continue to exist as long as 4 consecutive returns are not submitted. A new surcharge period doesn’t start just because company has submitted more than 4 returns late.
The Tutor has already answered you in the following thread:
https://opentuition.com/topic/surcharge-vat/
My bad, i didn’t check.
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