The Association of Taxation Technicians has responded to HMRC’s consultation on the ‘making tax digital’ penalty regime, which closed on 11 June, calling for a ‘soft landing’ approach. The ATT would like to see HMRC:
allow an initial penalty-free period spanning a typical 18 month MTD cycle;
follow the ‘suspension’ model for late submission penalties by allowing taxpayers a brief extension on a limited number of occasions; and
charge late payment interest at a single rate and only when the tax is overdue by 30 days.
Yvette Nunn, co-chair of ATT’s technical steering group, commented: ‘Any new penalty system has to have a soft landing to avoid it being seen by taxpayers as a revenue raiser.’ The ATT ‘sees fairness and simplicity as key in the creation of a structure which encourages good compliance and works effectively,’ she added.
The Association of Taxation Technicians has responded to HMRC’s consultation on the ‘making tax digital’ penalty regime, which closed on 11 June, calling for a ‘soft landing’ approach. The ATT would like to see HMRC:
allow an initial penalty-free period spanning a typical 18 month MTD cycle;
follow the ‘suspension’ model for late submission penalties by allowing taxpayers a brief extension on a limited number of occasions; and
charge late payment interest at a single rate and only when the tax is overdue by 30 days.
Yvette Nunn, co-chair of ATT’s technical steering group, commented: ‘Any new penalty system has to have a soft landing to avoid it being seen by taxpayers as a revenue raiser.’ The ATT ‘sees fairness and simplicity as key in the creation of a structure which encourages good compliance and works effectively,’ she added.
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