One aspect of the new digital self-assessment tax system announced by Chancellor of the Exchequer George Osborne in the Budget this week is a new system of fines and penalties for late payment that could be as much as £2000.
Plans for the new fines have only emerged in the last day or so as the massive Budget document is digested by experts and journalists.
But the basics seem to be this. A new points system will be introduced as part of the HMRC self-assessment tax portal that will resemble those related to drivers’ licences, with penalties increasing as you lag behind on filing the relevant information with HMRC.
One bit of good news is that if you miss the deadline once, you won’t get the existing £100 fine. But the later you are, the greater the hit which could be as much as £2000.
This new system is currently under discussion by officials so it will be interesting to see if it pans out. Tax experts have already expressed their belief that putting the new digital tax returns system in place by next year is overly ambitious.
