Recently, HMRC confirmed that it will be moving to a points based system to manage late payment of taxes. What will this entail? Well, it’s a bit like getting points on your driving licence.
HMRC have suggested that there would be a point given to the taxpayer every time they make a late submission, with a penalty charge over a certain threshold of points. It’s widely expected that VAT will be the first subject for implementation into the system in 2020.
But what does this realistically mean for you? Not a lot, but that’s only if you have a good accountant by your side who will ensure you don’t get caught paying late.