HMRC recently published details of the penalties system for late submissions and payments under Making Tax Digital, confirming it plans to pursue a points-based model.
Under this model, taxpayers would receive a point every time they fail to submit on time. A penalty will be charged at a certain threshold, which will be dependent on the frequency of their submission obligations. After the threshold has been reached, a penalty will be charged for every subsequent submission failure.
The penalty thresholds put forward are:
- 2 points for annual submissions,
- 4 points for quarterly submissions and
- 5 points for monthly submissions.
One amendment to the model following the consultation is that penalty points will have a shelf-life and would expire after a period of good compliance.
Periods of good compliance were outlined by HMRC as:
- 2 submissions for annual submissions,
- 4 for quarterly, and
- 6 for monthly.
HMRC have said they will make penalty points and actual penalties appealable, and give taxpayers the option to claim a reasonable excuse for failing to meet a filing obligation.
Which may well open up a can of worms, given how many appeals are likely to be lodged as a result of the increase obligations on the hapless taxpayers under MTD>
Tax does have to be taxing.
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So, as we head towards the end of yet another year what has changed?
ReplyDeleteNot a lot by the look of it, HMRC/Excom still up to their underhand trickery and lawbreaking.
Lack of action by the following;
Sheeple,
PAC,
M.P.'s,
IPCC,
PCS,
TUC,
Anyone that gives a feck,
Taxpayers,
'Customers',
Media.
That seems an awful lot of inaction and speaks volumes, given the sheer amount of money wasted, lost and mispent you might have thought...oh well.
Merry Xmas one and all and here's to you Little Jim!
Samuel Pepys would have run out of diary space by now. ;)