Having already consulted on late submission penalties, a further consultation will be published on 20 March 2017. Its aim is to consider the design aspects of the tax administration system which includes late filing and late payment interest and penalties. These aspects form part of the wider Making Tax Digital (MTD) proposals which aim to simplify the tax system.
In order for MTD to work, it requires a system of administration that will support the Government’s objectives. This includes the need to have a penalty and interest system that is compatible with the reporting requirements of MTD.