HMRC is moving firmly toward a behaviour-based compliance system, particularly with the rollout of Making Tax Digital.
The key feature is the points-based penalty regime, where repeated late submissions lead to penalties rather than one-off fines. This will apply more widely as MTD expands.
In addition, HMRC interest rates remain relatively high, increasing the cost of late payment. Combined with improved data collection, this means errors and delays are more likely to be identified—and penalised.
Timely filing and payment are becoming more critical than ever. Clients should ensure processes are in place to avoid missed deadlines.