From April 2022 a new penalty regime will be introduced for VAT returns submitted late.
For each late return, you will accrue a penalty point and once you have accrued 3 penalty points, every subsequent late return will result in a late filing penalty.
A similar regime will be introduced for MTD for the self-employed and landlords for submissions from April 2024.
Our advice is therefore to use the next few months to make sure your records are in a digital format, making it less likely that you will be late with your VAT returns and ensuring you are ready for MTD in good time for the new regime to begin.
