HMRC have been considering how to effectively police Making Tax Digital, and are currently undertaking discussions to determine the best penalty system to employ,

currently it seems a points basis is preferred, where your account would suffer points for late payment based on your required  filing frequency, once these reach a determined threshold, penalty would be charged probably based on a percentage of the underpayment, points would be removed after a period of compliant returns and payments.

much is still to be decided and we will endeavour to keep you informed of developments, in the meantime do not hesitate to contact us to discuss how you can prepare yourself for MTD that is now only 13 months from starting.