SolvedCH155518 | Penalties for failure to pay on time: rules for specific taxes: Plastic Packaging Tax (PPT): penalties – example
From HM Revenue & Customs · Compliance Handbook
Example of initial and further penalties on an amount of Plastic Packaging Tax
Plastic-Co Ltd delivers a return showing it is due to pay £60,000 of PPT on 30 July 2024, 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 30 July 2024. The penalty date is 1 August 2024. The penalties are as follows.
| - | Payment | Unpaid PPT | Penalty |
|---|---|---|---|
| Amount due at 30 July 2024 | - | £60,000 | - |
| Initial penalty of 5% on £60,000 at 1 August 2024 | - | - | £3,000 |
| Payment 1 October 2024 | £40,000 | £20,000 | - |
| 5 month further penalty of 5% on £20,000 at 1 January 2025 | - | - | £1,000 |
| Payment 1 February 2025 | £10,000 | £10,000 | - |
| 11 month further penalty of 5% on £10,000 at 1 July 2025 | - | - | £500 |
| Total penalty | - | - | £4,500 |