--- title: HMRC fines / penalties and Time to Pay arrangements description: Updated as at 01 January 2023 with HMRCs new VAT penalty regime Time to Pay arrangements If you or your business are finding it difficult to make a tax payment you may be able to enter into a monthly --- [Skip to content](https://support.standardledger.co/knowledge/hmrc-fines-/-penalties#main-content) ![](https://support.standardledger.co/hs-fs/hubfs/Standard%20Ledger%20Logo_RGB_transparent.png?height=40&name=Standard%20Ledger%20Logo_RGB_transparent.png) Open main navigation Close main navigation - [Contact us](mailto:support@standardledger.co) [Contact us](mailto:support@standardledger.co) Hi, how can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://support.standardledger.co/knowledge?hsLang=en) 2. [UK ARTICLES](https://support.standardledger.co/knowledge/uk-articles?hsLang=en) # HMRC fines / penalties and Time to Pay arrangements Updated as at 01 January 2023 with HMRCs [new VAT penalty regime](https://www.gov.uk/guidance/penalty-points-and-penalties-if-you-submit-your-vat-return-late#:~:text=For%20each%20return%20you%20submit,you're%20at%20the%20threshold.) **Time to Pay arrangements** If you or your business are finding it difficult to make a tax payment you may be able to enter into a monthly payment option with HMRC, called a [Time to Pay arrangement](https://www.gov.uk/guidance/find-out-how-to-pay-a-debt-to-hmrc-with-a-time-to-pay-arrangement). These arrangements are based on your individual / business financial position and circumstances, and capacity to pay. It’s usually easier to get an agreement before the deadline rather than after you’ve missed it. You might still be able to get one after the deadline, so it’s always worth [contacting HMRC](https://www.gov.uk/government/organisations/hm-revenue-customs/contact/business-payment-support-service). For Self Assessment bills, you may be able to [set up a payment plan online](https://www.tax.service.gov.uk/pay-what-you-owe-in-instalments), if you owe less than £30,000 and have no other tax debts. You’ll be charged interest for however long it takes you to pay off your income tax debt. This starts from the first day the payment is late. You can [check the current income tax rate on GOV.UK](https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates). **VAT returns** ***The deadline for submitting your return online is usually one calendar month and 7 days after the end of an accounting period. This is also the deadline for paying HMRC*** If you miss this deadline, you'll receive one (1) penalty point until you reach the penalty point threshold. When you reach the threshold, you’ll receive a £200 penalty.  Quarterly lodgers have a 4 point penalty point threshold.  Annual 2 points.  Monthly 5 points. If you're at the threshold by the time the next due date comes around, and you still haven't lodged your prior return/s, you'll receive another £200 penalty. **More information** - [How to pay HMRC with a Time to Pay arrangement](https://www.gov.uk/guidance/find-out-how-to-pay-a-debt-to-hmrc-with-a-time-to-pay-arrangement) \[HMRC\] - [Penalty points and penalties if you submit your VAT Return late](https://www.gov.uk/guidance/penalty-points-and-penalties-if-you-submit-your-vat-return-late#:~:text=For%20each%20return%20you%20submit,you're%20at%20the%20threshold.) \[HMRC\] - [HMRC Video on the new penalty system](https://register.gotowebinar.com/register/2930791552551435872)\[HMRC recorded video\] - [STARTUP FOUNDER INFORMATION](https://support.standardledger.co/knowledge/startup-founder-information?hsLang=en#main-content) - [Startup Funding](https://support.standardledger.co/knowledge/startup-founder-information?hsLang=en#startup-funding) - [CONTACTING STANDARD LEDGER](https://support.standardledger.co/knowledge/contacting-standard-ledger?hsLang=en) - [OUR BOOKKEEPING SERVICES](https://support.standardledger.co/knowledge/our-bookkeeping-services?hsLang=en#main-content) - [Bookkeeping Services](https://support.standardledger.co/knowledge/our-bookkeeping-services?hsLang=en#bookkeeping-services) - [Dext for Supplier invoices and Employee Expenses](https://support.standardledger.co/knowledge/our-bookkeeping-services?hsLang=en#dext-for-supplier-invoices-and-employee-expenses) - [OUR PAYROLL SERVICES](https://support.standardledger.co/knowledge/our-payroll-services?hsLang=en#main-content) - [Employers](https://support.standardledger.co/knowledge/our-payroll-services?hsLang=en#employers) - [Employees](https://support.standardledger.co/knowledge/our-payroll-services?hsLang=en#employees) - [OUR TAX SERVICES](https://support.standardledger.co/knowledge/our-tax-services?hsLang=en#main-content) - [Activity Statements](https://support.standardledger.co/knowledge/our-tax-services?hsLang=en#activity-statements) - [Tax Returns](https://support.standardledger.co/knowledge/our-tax-services?hsLang=en#tax-returns) - [OUR CFO SERVICES](https://support.standardledger.co/knowledge/our-cfo-services?hsLang=en) - [OUR FINANCIAL MODELING SERVICES](https://support.standardledger.co/knowledge/our-financial-modeling-services?hsLang=en#main-content) - [Financial model usage guidelines](https://support.standardledger.co/knowledge/our-financial-modeling-services?hsLang=en#financial-model-usage-guidelines) - [OUR R&D TAX INCENTIVE SERVICES (Australia)](https://support.standardledger.co/knowledge/our-rd-tax-incentive-services-australia?hsLang=en) - [OUR GRANT SERVICES](https://support.standardledger.co/knowledge/our-grant-services?hsLang=en#main-content) - [Top Grants](https://support.standardledger.co/knowledge/our-grant-services?hsLang=en#top-grants) - [OUR VALUATION SERVICES](https://support.standardledger.co/knowledge/our-valuation-services?hsLang=en#main-content) - [How we prepare your valuations](https://support.standardledger.co/knowledge/our-valuation-services?hsLang=en#how-we-prepare-your-valuations) - [OUR ACCOUNTS PAYABLE SERVICES](https://support.standardledger.co/knowledge/our-accounts-payable-services?hsLang=en) - [ACCOUNTING](https://support.standardledger.co/knowledge/accounting?hsLang=en#main-content) - [Xero](https://support.standardledger.co/knowledge/accounting?hsLang=en#xero) - [Accounting / Bookkeeping Articles](https://support.standardledger.co/knowledge/accounting?hsLang=en#accounting-bookkeeping-articles) - [PAYROLL](https://support.standardledger.co/knowledge/payroll?hsLang=en#main-content) - [Payroll articles](https://support.standardledger.co/knowledge/payroll?hsLang=en#payroll-articles) - [TAX and COMPLIANCE](https://support.standardledger.co/knowledge/tax-and-compliance?hsLang=en#main-content) - [Structure](https://support.standardledger.co/knowledge/tax-and-compliance?hsLang=en#structure) - [Key dates and How PAYG and GST work](https://support.standardledger.co/knowledge/tax-and-compliance?hsLang=en#key-dates-and-how-payg-and-gst-work) - [ATO information](https://support.standardledger.co/knowledge/tax-and-compliance?hsLang=en#ato-information) - [Income and deductions](https://support.standardledger.co/knowledge/tax-and-compliance?hsLang=en#income-and-deductions) - [UK ARTICLES](https://support.standardledger.co/knowledge/uk-articles?hsLang=en#main-content) - [Company setup and operations](https://support.standardledger.co/knowledge/uk-articles?hsLang=en#company-setup-and-operations) - [Payroll](https://support.standardledger.co/knowledge/uk-articles?hsLang=en#payroll) - [VAT](https://support.standardledger.co/knowledge/uk-articles?hsLang=en#vat) - [Raising Capital](https://support.standardledger.co/knowledge/uk-articles?hsLang=en#raising-capital) Need support? email support@standardledger.co © 2026 Standard Ledger