Thursday, January 20, 2022
HM Revenue and Customs is reforming late-filing and payment penalties to make them fairer and more consistent across taxes. The first stage of these reforms was set to come into effect early this year. However, on January 13, 2022, HMRC postponed the effective dates by nine months to one year.
The reforms will now come into effect:
As part of this reform, interest charges and repayment interest for VAT will be aligned with other tax regimes, including ITSA, and late filing and payment penalties will be harmonized.
HMRC has said that the "extra time allows [us] to ensure the IT changes necessary for the new penalties and interest charges can be introduced as effectively as possible, ensuring a high standard of service to customers".