The Finance Act 2021 (Increase in Schedule 26 Penalty Percentages) Regulations SI 2025/589 increase the penalty percentages for late payment of tax under Making Tax Digital – initially for VAT and those within the income tax pilot phase (‘eligible volunteers’).
The increased rates are as follows for late payments on and after 1 April 2025:
First penalty: tax overdue by 15 days: 3%; and tax overdue by 30 days: 3%.
Second penalty: tax overdue by 31 days or more: 10%.
Previously the rates were 2% 2% and 4% respectively.
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The Finance Act 2021 (Increase in Schedule 26 Penalty Percentages) Regulations SI 2025/589 increase the penalty percentages for late payment of tax under Making Tax Digital – initially for VAT and those within the income tax pilot phase (‘eligible volunteers’).
The increased rates are as follows for late payments on and after 1 April 2025:
First penalty: tax overdue by 15 days: 3%; and tax overdue by 30 days: 3%.
Second penalty: tax overdue by 31 days or more: 10%.
Previously the rates were 2% 2% and 4% respectively.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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