Making Tax Digital: sanctions for late submission and late payment

In the consultation document Making Tax Digital: Tax administration, published on 15 August 2016, the Government made proposals for sanctions for late submission and late payment. In the Summary of Responses, published on 31 January 2017, the Government recognised that more work needed to be done to get the late submission penalty model right and confirmed that it would continue to explore penalty interest as a sanction for late payment of tax.

This consultation sets out Government’s three possible models for late submission penalties (A: Points-based, B: Regular review of compliance, or C: Suspension of penalties). The proposals have been developed with the new Making Tax Digital for Business obligations in mind but the consultation also explores the suitability of the sanctions for other regular submission obligations. The consultation also provides an update on late payment penalty interest as a sanction for late payment of Income Tax, Corporation Tax and VAT.

The deadline for responses is 11 June 2017 and feedback should be sent to MTDTA@hmrc.gsi.gov.uk.