Dear Tutor,
I have a silly question in the case of the default charges in the case the trader have submitted and paid 4 consecutive VAT returns on time and have gotten a surcharge liability,then HMRC will forgive it I mean the trader doesn't need to pay it anymore? I have watched the lecture and read the materials but I'm still not 100% sure if I understand this properly.
Ask the Tutor ACCA TX-UK
VAT surcharge
If the trader submits four quarterly VAT returns on time and pays the VAT due on time then the surcharge liability notice period ends and the taxpayer starts the process over again should another default occur.
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