You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
A new, and arguably fairer, system for determining penalties for late returns and late payment of VAT was due to be introduced from April 2022.
A new, and arguably fairer, system for determining penalties for late returns and late payment of VAT was due to be introduced from April 2022. However, it has been recently announced that the start has been delayed until January 2023. The same system will also apply to returns under MTD for income tax and those penalties will now start in April 2024.
Under the new regime taxpayers will accumulate points for late submissions, and only after reaching a certain threshold will an automatic penalty be imposed. The threshold will depend on how regularly the taxpayer is required to submit a return.
08 Apr 2026
HMRC's large business directorate has doubled the amount of tax revenue it collects, according to the National Audit Office (NAO).
HMRC has taken in over £137 million from late payment interest so far for 2023/24, a freedom of information request from investment platform AJ Bell shows.
We are delighted to share some exciting news with you. We have officially merged with Wilson Partners – bringing our two businesses together to better serve our clients.