HMRC has updated its tax
information and impact note which explains the FA 2021 reforms to the
penalty regime for late submission of tax information, late payment of tax and
HMRC interest harmonisation.
The ‘late payment’ and ‘impact on individuals, households and
families’ sections have been updated to clarify how the late payment ‘first penalty’
works, noting that the initial 2% charge is based on the amount of tax
outstanding at day 15, with a further 2% charged on the outstanding amount at
day 30. Previously, the guidance described the penalty at 30 days as being ‘set
at 4% of the outstanding amount’.
HMRC has updated its tax
information and impact note which explains the FA 2021 reforms to the
penalty regime for late submission of tax information, late payment of tax and
HMRC interest harmonisation.
The ‘late payment’ and ‘impact on individuals, households and
families’ sections have been updated to clarify how the late payment ‘first penalty’
works, noting that the initial 2% charge is based on the amount of tax
outstanding at day 15, with a further 2% charged on the outstanding amount at
day 30. Previously, the guidance described the penalty at 30 days as being ‘set
at 4% of the outstanding amount’.
