HMRC have issued new guidance to accompany recent regulations (SI 2024/440) which gave effect to the new late-filing and late-payment penalties regime in relation to those who sign up to Making tax Digital for Income Tax Self-Assessment (MTD for ITSA) on a voluntary basis.
Anyone signing up voluntarily to MTD for ITSA, before the April 2026 start date, will need to confirm that they agree to the new penalties regime applying to them (agents are able to agree on behalf of clients). For those who sign up from 6 April 2024 onwards, this will be covered automatically as part of the sign-up process.
The guidance explains in basic terms how the points-based penalties for late filing work, and sets out when late-payment penalties start to apply, noting that interest starts to run from the first day on which payment is overdue (even though there is no immediate penalty).
HMRC note that there are no late-submission penalties for missing quarterly updates during the testing phase of MTD for ITSA. The principal MTD for ITSA regulations (SI 2021/1076) which set out the ‘periodic updates’ as required under TMA 1970 Sch A1 para 7, will not come into force until 6 April 2026.
HMRC have issued new guidance to accompany recent regulations (SI 2024/440) which gave effect to the new late-filing and late-payment penalties regime in relation to those who sign up to Making tax Digital for Income Tax Self-Assessment (MTD for ITSA) on a voluntary basis.
Anyone signing up voluntarily to MTD for ITSA, before the April 2026 start date, will need to confirm that they agree to the new penalties regime applying to them (agents are able to agree on behalf of clients). For those who sign up from 6 April 2024 onwards, this will be covered automatically as part of the sign-up process.
The guidance explains in basic terms how the points-based penalties for late filing work, and sets out when late-payment penalties start to apply, noting that interest starts to run from the first day on which payment is overdue (even though there is no immediate penalty).
HMRC note that there are no late-submission penalties for missing quarterly updates during the testing phase of MTD for ITSA. The principal MTD for ITSA regulations (SI 2021/1076) which set out the ‘periodic updates’ as required under TMA 1970 Sch A1 para 7, will not come into force until 6 April 2026.
