HMRC applies a process of surcharges and penalties when a company is late paying their VAT bill. This also includes the late payment of TAX..
Their are deadlines in place for filiing VAT and TAX returns and payment and generally this is one Month plus 7 days from the end of each accounting period.
Surcharges and Penalties
HM Revenue and Customs (HMRC) record a ‘default’ if:
they don’t receive your VAT return by the deadline
full payment for the VAT due on your return hasn’t reached their account by the deadline.
How much you pay
Your surcharge is a percentage of the VAT outstanding on the due date for the accounting period that is in default. The surcharge rate increases every time you default again in a surcharge period.
Surcharges can be as much as 15% of the VAT due.
for more information visit https://www.gov.uk/vat-returns/surcharges-and-penalties
Or simply contact us