Simplification of regulatory penalties – Budget updateWednesday, March 21st, 2012
Following consultation in June 2011, the Government intends to introduce a new power in the Finance Bill 2013 to increase the value of fixed penalties in line with inflation. In addition, a small number of defunct penalties will be repealed. The Government has decided that the benefits of simplifying regulatory penalties are not sufficient to justify the cost of major reform.
This could well impact on the recently introduced penalties for late or non-payment of tax and NI and for failure to report correctly
At the same time an announcement was made that HMRC will consult before the summer on new models for late payment and late filing penalties under Real Time Information. Legislation will be in Finance Bill 2013.
Please note the reference to RTI and penalties