As another year draws to a close it is often the time for reflection and to set those New Years resolutions! The last two years have shown us that we should appreciate the small things in life and here at AMR we will be celebrating the Christmas period with our own loved ones.
We can also appreciate that there are sadly some people who may find this time of year more difficult than others and for that reason the team are making a personal donation to a local food bank, Sustain based at Tonbridge Baptist Church. More information about the charity and the work they do can be found on their website
https://www.tonbridgebaptist.church/get-involved/tn10/sustain/?from=HomeSustain
CHRISTMAS PAY RUN
Whilst it is easy to get swept away with Christmas preparations it is important to remember that your payroll run may need to be processed earlier than normal and we urge our clients to take this into account when planning their workload over the coming weeks.
Our own payroll department will be closing from 5.00pm on Friday 23 December 2022 for the festive period. Can we please therefore request that if you haven’t done so already to send us your payroll information as soon as possible. We will be returning to the office refreshed and relaxed on Tuesday 3 January 2023.
CHANGES TO VAT PENALTIES AND INTEREST CHARGES
With effect from 1 January 2023 anyone who submits a VAT return will be subject to the new points based penalty system for late submission of their return, which will also include nil or repayment returns received late. Additionally there will also be a new penalty rate structure for late receipt of any VAT owed to HMRC.
Full information on the change can be found here https://www.gov.uk/guidance/prepare-for-upcoming-changes-to-vat-penalties-and-vat-interest-charges but in summary, for any return submitted late you will receive one penalty point. Once you have reached the threshold for penalties, depending on the frequency of returns submitted, you will receive a £200 penalty. For any late return thereafter a further £200 penalty will be issued.
Below is a summary of the thresholds.
| Submission frequency | Penalty points threshold | Period of compliance |
| Annually | 2 | 24 months |
| Quarterly | 4 | 12 months |
| Monthly | 5 | 6 months |
You are able to reset your points back to zero if you:
- Submit your returns on or before the due date for your period of compliance – this will be based on your submission frequency;
- Make sure all outstanding returns due for the previous 24 months have been received by HMRC
With regards to late payment of any VAT due, the interest rate will depend on the number of days the payment is late ranging from 0% to 4%. Full details can be found on the link above.
If you have any queries around this matter then please do get in touch.
Many thanks
The AMR Team
