The Chancellor made no new announcements in respect of tax penalties, compliance and administration in his Autumn Budget 2021.
Discovery Assessments
With retrospective effect:
- Finance Bill 2022 will include amendments to the Discovery provisions to ensure that HMRC can use its powers of discovery to recover certain tax charges, including the High-Income Child Benefit Charge (HICBC), Gift Aid donation-related charges and some pension charges.
All of the following changes had been pre-announced prior the Budget.
Making Tax Digital
- Making Tax Digital for Income Tax delayed until April 2024.
Changes to basis periods
From April 2024
- Legislation will be included in Finance Bill 2022 to simplify the basis period rules for the self-employed and partners.
- This will now include a more flexible use of overlap relief in the transition year and provisions to reduce the impact of transition profits on allowances and benefits.
- See Consultation: Income Tax Basis Period reform.
Tax Penalties
From 1 April 2022
- New late submission and late payment penalties for VAT apply for VAT registered businesses.