MTD

What are the penalties for non-compliance with MTD?

Key facts: Penalties for failing to file MTD for VAT returns on time will follow a points system. HMRC have stated that ...


Key facts:

Penalties for failing to file MTD for VAT returns on time will follow a points system. HMRC have stated that no actual fines for non-compliance with MTD for VAT will be levied in the first year when the business has made reasonable efforts to comply.

Fuller explanation:

A points-based system will be used to make businesses submit their MTD reports on time with late submission penalties. Points will be given for each report or payment that is late. Once points exceed a threshold a penalty will be charged for all subsequent missed deadlines.

After meticulously following the rules for a while, points will expire.

There will be an appeal process against points and HMRC have discretion to waive points.

The points system will be expanded to all tax submissions in time.

Provided businesses try to comply, HMRC say they will not give penalties for non-compliance in the first 12 months of MTD for VAT.

Similar posts

Get notified on new marketing insights

Be the first to know about new B2B SaaS Marketing insights to build or refine your marketing function with the tools and knowledge of today’s industry.