Measure
A new VAT interest and penalties regime came into force on 1 January 2023.
The government is introducing a number of amendments to clarify the application of the new rules, including amending the basis for the accrual of late payment interest on certain VAT amounts due (amounts not paid and overclaimed amounts recoverable) to ensure interest is charged, and any late payment penalty applied, as intended.
VAT taxpayers
Changes to the interest provisions will take effect from 15 March 2023, and changes to the late payment penalty rules will take effect from 1 January 2023.
It is perhaps to be expected that amendments will be required when a new regime comes into place.