Points mean fines

Parliament has voted to overhaul HMRC’s regime of fixed penalties and surcharges for late filing and payment. Under the present system, companies and individuals who miss the filing deadline have to pay a £100 penalty. That starts after one day and is regardless of any previous submission record. Charges then go up by £10 a day after three months to a maximum of £900 for individuals and by a percentage of tax debt for companies.
The changes introduce a new points system from next year, in effect allowing greater leeway for taxpayers before fixed penalties come into play. Late filers will have penalty points imposed but no automatic fine. However, there is a £200 fine for those who accumulate a certain number of points.
Companies that submit quarterly accounts will be fined when they have four points. Those who submit monthly have one more point – a five-point threshold.

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