HMRC to reform penalties regime
HMRC will next year roll out an overhaul of the regime for fixed penalties and surcharges when people file and pay their tax returns late. Under the current system, those who miss the filing deadline must pay a £100 penalty regardless of their previous submission record, with this going up £10 a day after three months to a maximum of £900 for individuals and by a percentage of the tax debt for companies. The reform, which will go to a vote in parliament this week, will see a points-based system that grants taxpayers greater leeway before imposing fixed penalties on repeat offenders.
Source: The Times (01/05/2021)