Penalties for making tax digital disclosed

The penalty system for Making Tax Digital will kick in within 15 days of an overdue payment and will operate as a two-tier regime, the government confirmed in the Finance Bill 2018-19, despite opposition over the complexity of the system.

The government has admitted that there were numerous complaints in the consultation responses stating that the system for Making Tax Digital penalties was overly complicated with effectively a two-tier system, but it will go ahead regardless.