The reforms come into effect:
- for VAT taxpayers from periods starting on or after 1 April 2022
- for taxpayers in Income Tax Self Assessment (ITSA), from accounting periods beginning on or after 6 April 2023 for taxpayers with business or property income over £10,000 per year (that is, taxpayers who are required to submit digital quarterly updates through Making Tax Digital for ITSA)
- for all other ITSA taxpayers, from accounting periods beginning on or after 6 April 2024.
Relevant information and guidance about the changes will be made available in a less technical form for taxpayers and those who represent them before their introduction.
For more information, read:
- the interest harmonisation and penalties for late payment and late submission tax information and impact note
- research on exploring communication needs of customers for the implementation of changes to Late Payment and Late Submission Penalties
Source gov.uk
See also Policy paper Interest harmonisation and penalties for late submission and late payment of tax
