Sarah Bradford explores the proposed new points-based penalty system that will apply where returns are submitted late.
For the tax system to function effectively, information must be supplied to HMRC in tax returns, which must be submitted by a specified date. To encourage adherence to deadlines, penalties are charged where returns are submitted late.
However, under the current regimes, there are a range of different penalties that penalise the same behaviour in a different way, depending on which tax the return relates to and which return is submitted late.
To strike a balance between encouraging compliance without punishing taxpayers who make the occasional mistake and penalising persistent and deliberate offenders, the government are to introduce a new points-based penalty system. The system will aim to encourage consistent
