I paid my VAT late. Is there a fine?
June 28, 2021I paid my VAT late. Is there a fine?
What is VAT?
Who needs to pay VAT?
What happens when you miss a VAT payment deadline?
If your annual turnover is less than £150,000
If your annual turnover is more than £150,000
Interest charges on VAT
Can I charge HMRC interest on VAT?
What happens if your VAT return is late?
If you didn't file a VAT return, but paid your VAT in full
Other VAT penalties
Reasonable care
- Keep records of every sale and purchase you make, so that you can accurately calculate your VAT. Apps like Ember use advanced machine learning to classify your transactions (for example, whether they are VAT-exempt or not), and work out your VAT bill automatically.
- Keep all these records safe. One of the best ways is to do this is digitally. You can use Ember's receipt capture system to store your receipts in the cloud, so they're safe and fully accessible.
- Get tax advice if you're not 100% sure about your VAT and VAT returns. However, HMRC will see you as responsible for the standard of advice you get, so make sure you pick a reputable and fully qualified tax adviser.
Careless mistake
Deliberate mistake
Deliberate and concealed mistake
Type of mistake | Financial penalty |
---|---|
Reasonable care | No penalty |
Careless mistake | 0-20% |
Deliberate mistake | 20-70% |
Deliberate and concealed mistake | 30-100% |