Penalty system for late tax returns to be reformed
Automatic £100 fines for filing tax returns late will be scrapped under Treasury plans and replaced with a driving licence-style points system where fines are paid after four points are accrued. HMRC sources said the changes were part of a new "holistic" approach from the taxman to go after "people who really don"t care about playing by the rules" rather than taxpayers who have made a mistake. Anita Monteith, of the ICAEW, said: "Tax is complicated - there is enough for individuals to worry about without being fined for minor transgressions rules that they might not have known about." Meanwhile, Yvette Nunn, of the ATT, commented: "A points-based system under which a taxpayer"s recent compliance history is considered before HMRC imposes a penalty for delayed submission of a tax return is sensible."
Source: The Daily Telegraph (24/11/2017)