In readiness for Making Tax Digital (MTD), commencing 6 April 2024, HM Revenue & Customs (HMRC) have confirmed that a new points-based penalty regime will be introduced for late quarterly MTD submissions/annual tax returns along with revised penalties for the late payment of tax. The new penalty regime will align the rules for VAT with Income Tax.

This article was last updated on 24 August 2021 at 15:35.

This article was last updated on 24 August 2021 at 15:35.

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Colchester Institute Corporation (CIC) is a further education college which like most such colleges, is predominantly grant funded. At the time of the judgement it received grant funding of £31.9m compared to tuition fees charged to students of only £700k.

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HMRC has confirmed that Making Tax Digital (MTD) will apply from April 2023. Unincorporated businesses with trading and/or rental income exceeding £10,000 per year will be required to keep their accounting records electronically and file quarterly updates with HMRC. In addition, a final end of period submission will be required, after the end of the tax year. It is estimated that four million businesses will be affected.

On 28 July, HM Revenue & Customs (HMRC) published two guidance notes: ‘Overclaims’ guidance and ‘Penalties’ guidance as they relate to overclaimed grants paid to employers through the Job Retention Scheme (the Scheme). The penalty regime will apply to the other COVID-19 financial support schemes too.