SolvedCH153680 | Penalties for Failure to Pay on Time: Rules for specific taxes: Bank Payroll Tax (BPT): Penalties: Example
From HM Revenue & Customs · Compliance Handbook
Example of initial and further penalties on an amount of Bank Payroll Tax
Secure Bank Ltd delivers a return showing it is due to pay £450,000 of Bank Payroll Tax on 31 August 2010, but it fails to make the payment. The company makes some payments at later dates, as shown in the table below.
The due date is 31 August 2010. The penalty date is 1 September 2010. The penalties are as follows.
| Payment | Unpaid BPT | Penalty | |
|---|---|---|---|
| Amount due at 31 August 2010 | £450,000 | ||
| Initial penalty of 5% on £450,000 at 1 September 2010 | £22,500 | ||
| Payment 1 December 2010 | £300,000 | £150,000 | |
| 5 month further penalty of 5% on £150,000 at 1 February 2011 | £7,500 | ||
| Payment 1 July 2011 | £100,000 | £50,000 | |
| 11 month further penalty of 5% on £50,000 at 1 August 2011 | £2,500 | ||
| Total penalty | £32,500 |