HM Revenue and Customs (HMRC) is taking a firm stance on overdue VAT returns, issuing warnings to UK tax agents who have at least two outstanding returns. The tax authority has set a deadline of 7 February 2026 for agents to resolve all outstanding VAT obligations or face enforcement actions, including the suspension of their agent codes.
In letters sent to tax agents, HMRC emphasizes their crucial role in the tax collection system and reminds them of their responsibility to keep their own tax affairs accurate and up to date. Agents who are VAT registered must submit VAT returns on time, including nil or repayment returns, regardless of whether they owe any VAT.
HMRC highlights that late submissions may result in surcharges, penalties, and interest charges. For VAT accounting periods starting on or after 1 January 2023, penalties will specifically target late submissions. Agents with reasonable excuses for late filing may avoid penalties, provided they submit returns promptly once the excuse ends.
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Failure to comply by the deadline may lead HMRC to suspend agent codes, report the case to professional bodies under public interest disclosure, and reassess VAT liabilities if current assessments are deemed insufficient.
Agents with questions regarding these warnings can contact HMRC via email at [email protected], using the subject line ‘Agents own affairs – VAT missing returns’. Further guidance on communication protocols with HMRC is available on the official GOV.UK website.
HMRC also offers support for those unable to pay tax owed in full through its helpline at 0300 200 3835.