Penalty Reform for Making Tax Digital for Income Tax Self Assessment volunteers
Customers volunteering to join Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) from April 2024 will be subject to the government’s new penalty regime.
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As announced at Autumn Statement 2023, the government is legislating to ensure customers who volunteer to join Making Tax Digital for Income Tax Self Assessment from April 2024 will benefit from the new penalty reform measures.
The penalty reform measures will only apply to MTD for ITSA volunteers for annual submission obligations and late payment of tax.
Penalty reform provides fairer, points-based sanctions for late submission of returns and more proportionate penalties for late payment of tax liabilities.
Updates to this page
Last updated 30 April 2024 + show all updates
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The Making Tax Digital volunteers and penalties section has been updated, clarifying that where a 'Time To Pay' arrangement is made within 15 days of the payment due date it will prevent a late payment penalty, as long as the agreement is upheld by the taxpayer.
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Update to reflect the provision of OBR certified Exchequer impacts.
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First published.