CH193260 | Penalty reform - penalties for failure to pay VAT on time from 1 January 2023: penalty assessments: when you must tell the person of the assessment

NB: “These rules currently only apply to VAT, for VAT periods starting on or after 1 January 2023. These rules will come into force for other tax regimes at a future date. You must check the date from which these rules apply for the tax or duty you are dealing with”

Time limits

An assessment of a penalty, including any supplementary assessment, see CH193280, must be made on or before the later of Date A and (where it applies) Date B.

Date A is the end of the period of 2 years beginning with the payment due date.

Date B is the last day of the period of 12 months beginning with

1. the end of the appeal period for the assessment of the amount of tax in respect of which the penalty is assessed, or

2. if there is no such assessment, the date on which that amount of tax is ascertained.

For Date B, “appeal period” means the period during which—

1. an appeal could be brought, or

2. an appeal that has been brought has not been determined or withdrawn.

FA21/SCH26/PARA18