How to remove penalty points under the new system?

HMRC has introduced new penalty and interest rules for late returns and payments from 1 January 2023. Details here.

On 4 January 2023 HMRC published guidance on how to remove these points to avoid a penalty. This is particularly important if a business has reached the penalty point threshold.

The penalty thresholds are:

• annual returns – 2 points
• quarterly returns – 4 points
• monthly returns – 5 points

Source Marcus Ward