A liability to account for VAT on rents received will exist where the owners have opted to tax the building. The VAT charged on the rents needs to be accounted for and paid to HMRC within 30 days of the end of each VAT quarter, subject to certain deductions in respect of VAT costs.
- Q.
- Are there any fines or penalties for the late submission of the quarterly VAT return or the late payment of the VAT liability?
- A.
- Yes. This is known as a default surcharge. If the return is submitted late, a notice is issued and any further defaults within the default period (usually 12 months from the default) will give rise to penalties from 2% to 15% of the tax due.