This paragraph covers exempted defaults for the purposes of the default surcharge. The default surcharge applies to accounting periods starting before 1 January 2023. This paragraph therefore deals only with those periods.
For penalties for late payment of tax and late submission of VAT returns for periods starting on or after 1 January 2023, see V5.302B and V5.302C.
Circumstances under which exemption from surcharge applies
A default is material to a surcharge if1:
- Ìý
•ÌýÌýÌýÌý it gives rise to a liability to default surcharge, or
- Ìý
•ÌýÌýÌýÌý it is taken into account in the service of an SLN on which the surcharge depends and the person has not previously been liable to a surcharge in respect of the surcharge period specified in or extended by that notice
Where a person is prima facie liable to default surcharge, they are not so liable if, in relation to a default which is material to a surcharge, they satisfy HMRC or (on appeal) a tribunal that they either2:
- Ìý
•
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Web page updated on 17 Mar 2025 13:39