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ATT responds to MTD filing penalties

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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.