»Ê¹ÚÌåÓýapp

If a taxpayer defaults (files a return or pays late) within the surcharge period, the surcharge period is extended.

For example: Mr Smith files his return for 03/16 late. A Surcharge Liability Extension Notice is issued to Mr Smith. »Ê¹ÚÌåÓýapp notice tells Mr Smith that his surcharge period has been extended until 31 March 2016.

If a taxpayer pays a return late during a surcharge period they may be charged an extra amount known as a surcharge. »Ê¹ÚÌåÓýapp surcharge is calculated as a percentage of the VAT paid late. »Ê¹ÚÌåÓýapp rates of surcharge are:

• 2% of the amount of VAT paid late for the first late payment
• 5% of the amount of VAT paid late for the second late payment
• 10% of the amount of VAT paid late for the third late payment
• 15% of the amount of VAT paid late for the fourth and subsequent late payments.

Note: A surcharge is not charged at the 2% and 5% rates if it is for less than £400. »Ê¹ÚÌåÓýappre is a minimum surcharge of £30 charged at the 10% and 15% rates.