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Policy Paper Published 30 Apr 2024 HM Revenue & Customs ↗ View on GOV.UK

Penalty Reform for Making Tax Digital for Income Tax Self Assessment volunteers

Customers volunteering to join Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) from April 2024 will be subject to the government’s new penalty regime.

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As announced at Autumn Statement 2023, the government is legislating to ensure customers who volunteer to join Making Tax Digital for Income Tax Self Assessment from April 2024 will benefit from the new penalty reform measures.

The penalty reform measures will only apply to MTD for ITSA volunteers for annual submission obligations and late payment of tax.

Penalty reform provides fairer, points-based sanctions for late submission of returns and more proportionate penalties for late payment of tax liabilities.