Key points
- The penalty systems for late returns and late payments are completely separate.
- If a business submits a late return under the new regime HMRC will issue a penalty point.
- The points will be expunged once two years have passed.
- Withdrawal of the repayment supplement regime for periods beginning on 1 January 2023 or later.
Farmers beware! Exporters beware! Bookshops beware! Pharmacists beware!
Now that I have grabbed readers’ attention with my dramatic opening sentence I will explain the reason for my statement: for the first time in the 49-year history of the nation’s favourite tax a business or organisation could be charged a financial penalty by HMRC for submitting a late repayment return. Shock! Horror! Let’s complain to our MP … but I think it is an excellent policy decision and will reveal why.
I will also explain how the new ‘points makes penalties’ –...