A new system of points-based penalties is being introduced for all MTD submissions. This system consists of a combination of fixed rate and tax geared penalties.
For every submission deadline missed, you receive one point. The number of points required to generate a penalty varies depending upon the type of report [monthly; quarterly; annual]. Points get cleared after two years.
Penalties for late payment can be avoided if a ‘time to pay’ arrangement has been agreed with HMRC.
There will be an appeals procedure.
