Updated Penalty Charges

The government are updating the penalties for used for VAT and Income Tax Self Assessment with the aim to make it fairer and more consistent.

The new system will be points based, with penalties issued when a threshold is reached. Late payments will be proportionate to the amount owed and also how late it is, encouraging prompt payment.

The new system has a phased implementation – VAT taxpayers have had the new system since 1st April 2022, with the Income Tax Self Assessment taxpayers with business or property income over £10,000 per year will have the updated charges from their accounting period starting beginning on or after 6th April 2023, with all other Income Tax Self Assessment taxpayers having the system from their accounting period starting on or after 6th April 2024.

Subscribe To Our Newsletter

We won't send you tonnes of emails but we will keep you updated of our latest news and some useful accounting & bookkeeping tips

Share This Post

More To Explore

Tax Advisory Services

COP 9 Disclosure requests from HMRC

A COP 9 request (Code of Practice 9) is a formal process used by HMRC to investigate cases of suspected serious tax evasion. What should you do if you receive one?


Moving Accountants – FAQ

If you are considering switching accountants, you may have various questions regarding the process, implications, and factors to consider. Here, we cover what you need to question.

Do you need practical bookkeeping & accounting services?

Drop us a line to see how easy accounting services can be

Contact practical bookkeepers and accountants in southend