In updates to its guidance on the harmonised penalties and interest regime which was brought into force from 1 January 2023 for VAT only, and which will apply for other taxes in line with the transition to Making Tax Digital, HMRC has confirmed the 2026 and 2027 implementation dates for Making Tax Digital for income tax self-assessment. The guidance sets out how and when the new penalties will apply for late filing of returns and late payment of tax, noting that they will start to apply for income tax purposes from the point at which businesses are brought into MTD. In-scope businesses with income over £50,000 per year will join MTD for ITSA from 6 April 2026, and those with income between £30,000 and £50,000 will be mandated from 6 April 2027. The guidance notes that penalties for other businesses outside the scope of MTD will start to apply ‘after the introduction for MTD taxpayers’. No further changes to the implementation timetable were announced at Autumn Statement 2023, although several simplifications were announced.
In updates to its guidance on the harmonised penalties and interest regime which was brought into force from 1 January 2023 for VAT only, and which will apply for other taxes in line with the transition to Making Tax Digital, HMRC has confirmed the 2026 and 2027 implementation dates for Making Tax Digital for income tax self-assessment. The guidance sets out how and when the new penalties will apply for late filing of returns and late payment of tax, noting that they will start to apply for income tax purposes from the point at which businesses are brought into MTD. In-scope businesses with income over £50,000 per year will join MTD for ITSA from 6 April 2026, and those with income between £30,000 and £50,000 will be mandated from 6 April 2027. The guidance notes that penalties for other businesses outside the scope of MTD will start to apply ‘after the introduction for MTD taxpayers’. No further changes to the implementation timetable were announced at Autumn Statement 2023, although several simplifications were announced.
