VDSOG900 | Movement into and out of the POA scheme

Defaults are not affected by movements into or out of the Payment On Account (POA) scheme. Section 59B VAT Act 1994 explains the relationship between sections 59 and 59A.

For example:

Company A failed to pay their 09/16 return on time. A Surcharge Liability Notice was issued to the company on 9 November 2016. The company enters the POA scheme on 1 December 2016 and pays the balancing payment for the accounting period 03/17 late. As this default occurred within a previously notified surcharge period a 2% surcharge is charged.