If you pay your VAT quarterly by direct debit the sign-up window has closed for the 7 August (30 June quarter) submission. Do not worry as HMRC have announced that you will not be penalised this time so you may file the old way and come back when the direct debit has been collected to sign up in time to file the next return.

Although HMRC will not penalise you, they will send a letter telling you that you missed the deadline and asking you to take action.

Remember: Company officers are jointly and severally liable for the businesses VAT penalty

The decision in a recent tax tribunal case reminds us that directors and other company officers may be personally liable for VAT penalties of their company. The recent case involved a penalty for late registration for VAT where the threshold had been exceeded.

Three conditions must be satisfied before the liability for a penalty payable by the company can be imposed on an individual:

  1. A penalty must be payable by the company for a deliberate failure.
  2. The individual on whom HMRC seek to impose liability must be an “officer” of the company
  3. The deliberate failure must be attributable to that officer.

If you need any help with filing your VAT for MTD please contact your usual Ellacotts contact or Derek Boughton on dboughton@ellacotts.co.uk or 01295 250401.