Content
Leading article...
We can't go on like this...
General tax...
The name is Bond
Blessed are the givers
Excuses, excuses
PAYE the penalty
Silver and gold
Moving goalposts
Doctor, doctor...
Something phishy
Pension problems
Tax dot com
Unpleasant discoveries
Fair's fair (at last)
Chartered taxpayers
This year, next year
VAT...
Focus your mind
Flat rates aren't flat
Reverse the charges
Flapjack flash
Ready set ECSL
A lofty idea
Law items...
I want my lawyer
Not on my holiday
A grey area
No difference
| Default surcharge is a nasty penalty for being late paying your VAT. It doesn't bite on the first late payment, or even on the second for a small trader, but once you have received a "surcharge liability notice" any further delays can be penalised at 2%, 5%, 10% or 15% of the amount paid late - even for a single day. If you are a large trader, that can be very harsh. A big company had a succession of problems - including the employee concerned "failing to prioritise the VAT return" - which triggered a surcharge of over £90,000 for being a day late with the VAT. It offered to pay interest instead - at a market rate, that would have been a little over £7,000. The Tribunal said that wasn't possible. The employee may have a different set of priorities in future. If you have received a surcharge liability notice, paying the VAT on time for four successive quarters and getting rid of it is very important. If you are having difficulty with your VAT compliance, we are here to help. |
© Bayar Hughes & Co., 2010.