Policy paper

Penalties for late submission

Find out about the new points-based late submission penalties.

• From: HM Revenue & Customs
• Published: 3 March 2021
• Last updated: 17 November 2023 — See all updates

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Penalties for late submission

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Details

The changes now apply to VAT customers for accounting periods beginning on or after 1 January 2023.

For Income Tax Self-Assessment (ITSA) customers, the changes will apply as customers become mandated to Making Tax Digital (MTD). This means:

• for businesses, self-employed individuals and landlords with income over £50,000 per year from the tax year beginning 6 April 2026
• for businesses, self-employed individuals and landlords with income over £30,000 per year from the tax year beginning 6 April 2027

For all other ITSA customers outside the scope of MTD, the changes will apply after the introduction for MTD taxpayers.

Relevant information and guidance about the changes will be made available in a less technical form for taxpayers and those who represent them before their introduction.

For more information, you can read:

• the Interest harmonisation and penalties for late payment and late submission tax information and impact note
• research on exploring communication needs of customers for the implementation of changes to late payment and late submission penalties

Published 3 March 2021
Last updated 17 November 2023 + show all updates

1. 17 November 2023

   Updated the dates for when the changes will apply for Income Tax Self-Assessment customers.

2. 13 January 2022

   The new late submission penalties have been delayed. They will now begin on 1 January 2023.

3. 27 September 2021

   The start date for Making Tax Digital for Income Tax Self-Assessment has been postponed until April 2024.

4. 29 March 2021

   More detailed information about VAT groups has been added.

5. 3 March 2021

   First published.