HMRC delays reform of late payment penalty regime | WDM

Twitter
Follow us on Twitter
MENU
7
November

HMRC delays reform of late payment penalty regime

HMRC has further delayed the planned reform of the late payment penalty regime.

HMRC planned to introduce the new penalty regime alongside Making Tax Digital (MTD) for income tax in April 2018, but the Revenue subsequently pushed its introduction back when MTD for income tax was deferred to April 2020.

Within the Overview of Tax Legislation and Rates (OOTLAR) document, which was published following the 2018 Autumn Budget, the government stated that it ‘remains committed’ to the reform of the late payment penalty regime, and intends to legislate for it ‘in a future Finance Bill’. Consequently, some experts have predicted that the new penalty regime will not be in place until April 2021 ‘at the earliest’.

Commenting on the matter, John Cullinane, Tax Policy Director at the Chartered Institute of Taxation (CIOT), said: ‘We are broadly supportive of these reforms to HMRC’s penalties regimes, so we are disappointed by this further delay, though as with any reform, we acknowledge that it is more important to do it right than to do it quickly.’

HMRC previously outlined the new penalty scheme, which is set to be a two-tier system that will take effect 15 days after a late payment.

7 Questions you must ask an accountant
How To Grow your business by 46.4% - Special Free Whitepaper
To get the free whitepaper, simply enter your name and e-mail address below and click the ‘Get FREE Whitepaper’ button. You will receive an email shortly with your FREE Whitepaper pdf from our team...

Fields marked with an * are required

By submitting this form you agree to receive information via email newsletters about products and services from WDMCA which we think may interest you. You can opt out of receiving these newsletters by clicking the unsubscribe link in newsletters we send.

Download our FREE iPhone app

Testimonials

From the opening of our store to the eventual sale of four stores seventeen years later, WDM have provided invaluable assistance all the way along. They are more than just an accountant to us and we couldn’t speak highly enough of them.

Pat McKenna – McDonalds Franchisee
Sign up to our newsletter
Oakfield House, 378 Brandon Street, Motherwell ML1 1XA        t: 01698 250 251        f: 01698 250 261