The UK government is set to impose penalties on those who have failed to pay taxes on their cryptocurrency holdings
The UK government has announced plans to impose stricter penalties on individuals and businesses that fail to pay their taxes on time. The measures are designed to encourage compliance and raise revenue and are part of a broader crackdown on tax evasion.
Under the new proposals, individuals who fail to pay their taxes on time will face penalties of up to 100% of the amount owed. Businesses will also face harsher penalties, with a maximum penalty of 300% of the tax owed.
The government has also announced plans to make it easier for HMRC to collect unpaid taxes. It will include giving HMRC the power to seize assets, such as cars and homes, from taxpayers who fail to pay their bills.
The new measures are likely to be unpopular with some taxpayers, but the government believes that they are necessary to ensure that everyone pays their fair share. The government estimates that the new measures will raise an additional £1 billion in revenue over the next five years.
The move to impose tougher penalties on unpaid taxes is in line with the government’s commitment to crack down on tax evasion. Tax evasion is a severe problem in the UK, costing the government an estimated £35 billion each year. The government has pledged to take a number of measures to tackle tax evasion, including increasing the number of tax inspectors and improving the use of technology.
The government’s plans have been welcomed by some tax experts, who say that they will help to reduce the amount of unpaid taxes. However, others have expressed concern that the penalties are too harsh and could have a disproportionate impact on small businesses.
The new measures are expected to come into effect in April 2024. Taxpayers are advised to start preparing for the changes now to avoid falling foul of the new penalties.