Update August 20, 2021: HMRC has updated the section ‘where HMRC might not assess a late payment penalty’ with guidance on how we assess a first penalty and any tax outstanding.
Find out about the new late payment penalties and interest charges.
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
