Amongst many other propositions, the draft UK Finance Bill published on 6th July 2018 details plans for a shake-up of the existing tax penalty system for late payments of tax.
The proposed new system will consist of points-based penalties as opposed to just fining, with points accumulating to trigger a financial penalty after the number of points received breaches a set threshold.
The points system will be more personalised and less rigid than the current fining system, with compliance history considered and the expiration of points after a certain period of compliance. Points can potentially be waived if deemed inappropriate or if the taxpayer makes a successful appeal.
Although more flexible and personalised, this indeed does appear to result in a more complicated penalty system. At present, the points system remains a proposal and consultations remained open until 31st August 2018. The final Bill will be introduced in Autumn 2018.
In the meantime, if you wish to discuss any aspect of your own tax planning or would like to discuss Tax Returns, payment and declaration, please do not hesitate to contact us.