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You can find the current article at its original source at https://www.theguardian.com/politics/2017/nov/24/treasury-replaces-tax-return-fines-with-points-type-system
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| Version 0 | Version 1 |
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| Treasury replaces tax return fines with points-type system | Treasury replaces tax return fines with points-type system |
| (2 months later) | |
| Reforms aimed at enabling HMRC to concentrate on serious avoidance | |
| Patrick Greenfield | |
| Fri 24 Nov 2017 00.21 GMT | |
| Last modified on Mon 27 Nov 2017 13.14 GMT | |
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| The £100 immediate fine for filing a late tax return will be replaced by a driving licence-style points system. | The £100 immediate fine for filing a late tax return will be replaced by a driving licence-style points system. |
| The change will come as part of a series of Treasury reforms which aim to concentrate on serious tax avoidance and not punish taxpayers who make simple errors. | The change will come as part of a series of Treasury reforms which aim to concentrate on serious tax avoidance and not punish taxpayers who make simple errors. |
| Currently, people who fail to lodge their self-assessment tax return by 31 January are liable to pay an immediate £100 fine, which increases incrementally while the form is outstanding. Last tax year, 840,000 people missed the 31 January deadline. | Currently, people who fail to lodge their self-assessment tax return by 31 January are liable to pay an immediate £100 fine, which increases incrementally while the form is outstanding. Last tax year, 840,000 people missed the 31 January deadline. |
| The Treasury’s plans were revealed in the Red Book, which was published alongside the budget this week, and will be outlined by the chancellor next week. | The Treasury’s plans were revealed in the Red Book, which was published alongside the budget this week, and will be outlined by the chancellor next week. |
| The document reads: “The government will reform the penalty system for late or missing tax returns, adopting a new points-based approach. It will also consult on whether to simplify and harmonise penalties and interest due on late payments and repayments. | The document reads: “The government will reform the penalty system for late or missing tax returns, adopting a new points-based approach. It will also consult on whether to simplify and harmonise penalties and interest due on late payments and repayments. |
| “This will ensure that the system is fair, simple and effective across different taxes. Final decisions on both measures will be taken following this latter consultation.” | “This will ensure that the system is fair, simple and effective across different taxes. Final decisions on both measures will be taken following this latter consultation.” |
| It continues: “If a customer achieves a sustained period of good compliance before a penalty is triggered, the points total will be reset to zero. | It continues: “If a customer achieves a sustained period of good compliance before a penalty is triggered, the points total will be reset to zero. |
| “A sustained period means that a number of submissions are provided on time for a set period.” | “A sustained period means that a number of submissions are provided on time for a set period.” |
| An HMRC source told the Daily Telegraph: “We want to take a holistic approach and not penalise people who trip up and go after people who really don’t care about playing by the rules.” | An HMRC source told the Daily Telegraph: “We want to take a holistic approach and not penalise people who trip up and go after people who really don’t care about playing by the rules.” |
| HMRC | |
| Self-assessment tax | |
| Tax | |
| Tax and spending | |
| Income tax | |
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