Date posted: 10th Sep 2021
HM Revenue & Customs (HMRC) are introducing a new penalty system to try to make the tax system fairer and more consistent.
The new system will use a points-based system rather than simply an immediate fine. This means that those who are consistently late and miss deadlines frequently will accrue more points and pay larger penalties.
The changes will be introduced for VAT submissions from April 2022 and for those taxpayers who will be required to comply with Making Tax Digital (MTD) for income tax submissions, from April 2023. MTD will impact upon taxpayers with trading or property income over £10,000, from April 2023. As an aside, it is very important that those taxpayers are ready to comply with the digital submissions from April 2023.
More details on the new penalty system is available at https://www.gov.uk/government/publications/penalties-for-late-submission/penalties-for-late-submission
If you have any queries regarding penalties for late filing of tax returns, please give us a call or contact us here.