Lucy Frazer
Main Page: Lucy Frazer (Conservative - South East Cambridgeshire)Department Debates - View all Lucy Frazer's debates with the HM Treasury
(2 years, 3 months ago)
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The Financial Secretary to the Treasury (Lucy Frazer)
In the Finance Act 2021, the Government legislated to reform penalties for late submission and late payment of tax, initially from 1 April 2022, and to align interest charges for VAT with other major taxes.
Today, I am announcing that these changes for VAT businesses will now be introduced nine months later, on 1 January 2023.
HMRC is committed to becoming one of the most digitally advanced tax authorities in the world. The ambition and pace of change needs to be balanced with well-tested systems and good customer service, particularly when businesses are facing additional challenges and uncertainty.
This extra time allows HMRC to ensure that the IT changes necessary for the new penalties and interest charges can be introduced as effectively as possible, ensuring a high standard of service to customers.
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