Commentary

A4.558 FA 2021 late filing penalty (prospective)

Administration and compliance

A4.558 FA 2021 late filing penalty (prospective)

A4.558 FA 2021 late filing penalty (prospective)

For income tax self assessment (ITSA) taxpayers, the new penalty regime described below replaces the harmonised regime at A4.550 from a date to be appointed by the Treasury via regulations1. See the HMRC technical note: Penalties for late submission. For ITSA taxpayers with business or property business turnover of more than £10,000 per year, who will be required to submit digital quarterly updates via Making Tax Digital (MTD) (see A4.172), the new regime is expected to take effect from 6 April 2024. For all other ITSA taxpayers, it is expected to take effect from 6 April 20252. See also the separate penalty at A4.559 for deliberately withholding information.

The FA 2021 regime replaces existing late filing penalties with a points-based system. The points-based system provides for a person to be liable to penalty points in respect of each group of returns, with returns being grouped according to the frequency with which they are required to be made. A penalty of £200 becomes chargeable when a maximum penalty points total is reached for a group of returns. A similar points-based regime will apply to value added tax, but taxpayers will have separate points totals for direct taxes and VAT.

Groups of returns

For self-assessment taxpayers, returns are grouped (according to the frequency with which returns are required to be made) as set out below3. References in this commentary to a 'return' include any return, information, statement, account or other document specified in any of the groups4.

Income

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