UK: Penalties for late payment of VAT, other taxes
Changes apply to VAT taxpayers and making tax digital system testers, effective May 31, 2025
HM Revenue & Customs (HMRC) in May 2025 increased penalties for late tax payments of value added tax (VAT) and other taxes, retroactively effective from April 1, 2025.
Penalties increased to:
- 3% for payments delayed beyond 15 days
- 3% for delays beyond 30 days
- 10% annually for unpaid taxes from day 31
The changes apply to VAT taxpayers and making tax digital system testers, effective May 31, 2025.
For more information, contact a KPMG tax professional in the UK:
Emma Abraham | emma.abraham@kpmg.co.uk