Tax Compliance – Proposed Increased Fines and Regulations
HMRC are proposing the following changes which they would like to introduce over the next few years:-
- A sliding scale of penalties for the late filing of Tax Returns.
- 4% of outstanding tax for Tax Returns filed between 30 days and 6 months late.
- 10% of outstanding tax for Tax Returns filed between 6 months and a year late.
- 15% of outstanding tax for Tax Returns filed over a year late.
- Companies and the self-employed with income above £10,000 will be required to submit returns online every three months instead of annually from 2019. This is intended to apply to Corporation Tax, Income Tax, VAT and National Insurance with effect from 2019.
- Introducing a “penalty point” scheme for individuals failing to submit their Tax Returns on time as opposed to the current fine of £100 for missing the 31 January deadline. An individual would be punished for missing four consecutive quarterly deadlines.
These are proposals only at this stage – watch this space for further news in the future.Talk to Barnes Roffe today