New VAT penalties are here

HMRC is reminding VAT-registered businesses to file their VAT returns and pay on time because new penalties are being applied. The late payment penalties and points-based late submission penalties were introduced from 1 January 2023, replacing the VAT default surcharge, and apply to accounting periods which start after that date.
The first returns and payments affected by the penalties are due by 7 March 2023. Penalties for late VAT returns also apply to businesses that submit nil returns and repayment returns. Changes have also been made to how interest is calculated.