Consultation outcome

Making Tax Digital: sanctions for late submission and late payment

This consultation has concluded

Download the full outcome

Making Tax Digital: sanctions for late submission and late payment - summary of responses

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Detail of outcome

This document summarises the responses to the consultation and sets out the government’s planned approach to a new late submission penalty regime. The government can confirm that the points based model will be taken forward.

The document also sets out some further details of the model, including:

  • the approach to Making Tax Digital obligations
  • a maximum lifetime for points
  • the effect of continuing to fail to submit a return

The government plans to carry out a technical consultation on the draft legislation in Summer 2018.

The government has also published a consultation on simplified interest and late payment penalties, and it is intended to take forward both elements as a coherent package. These consultations form part of the government’s work to align and simplify the tax administration framework.

Original consultation

Summary

This consultation sets out three possible models for late submission penalties and provides an update on late payment penalty interest.

This consultation ran from
to

Consultation description

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 our three possible models for late submission 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 government would like to hear views from anyone who is affected by or interested in these proposals, including individuals, businesses, agents and representative bodies.

Documents

Making Tax Digital - sanctions for late submission and late payment

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 20 March 2017
Last updated 1 December 2017 + show all updates
  1. Published summary of responses document.
  2. First published.