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...for Hyacinth. The scary situation in which a business makes an early VAT payment to HMRC but suffers a default surcharge
KEY POINTS
- VAT default surcharge can be up to 15%.
- A review of the surcharge system.
- A late return requires returns to be on time for the next 12 months to avoid surcharges arising.
- Special arrangements exist for smaller businesses.
- Payment method is important.
- Could HMRC’s guidance be clarified?
Over the years and as far as tax is concerned I have reached the conclusion that one of the most annoying issues for an accountant is when a “grade A” client gets a penalty or default surcharge from HMRC.
A “grade A” client is one that always gives tax and accounting issues top priority and always tries to pay the right amount of tax … and of course always pays their accountancy fees promptly...
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