Are you ready for points-based tax penalties?

Making Tax Digital has been described as the biggest shake-up to the taxation system since Self-Assessment was introduced more than 20 years ago. It requires all businesses to submit summarised accounts to HMRC on a quarterly basis and becomes effective for VAT registered businesses from April 2019. Non VAT registered businesses will be phased in next and the roll out completed by 2020.

“We do know that many smaller businesses throughout the UK will struggle with Making Tax Digital when they have to implement it themselves.

HMRC has published draft clauses that will form the basis of the Budget later this year, outlining a significant change to the way they will be levying penalties, with a new points based tax system.