SolvedDMBM803600 | Time To Pay: agreeing or rejecting Time To Pay: surcharges, late payment penalties and Time To Pay
From HM Revenue & Customs · Debt Management and Banking Manual
Some content of this manual is being considered for archiving. If there is content you use regularly, please email [email protected] to let us know as soon as possible.
Surcharges and late payment penalties
Different taxes have different rules regarding surcharges and penalties for late payment. This includes when the surcharges / penalties are payable and how the surcharge / penalty amount is calculated.
Section 108 of the Finance Act 2009 introduced legislation that allowed suspension of penalties for late payment in certain circumstances.
Penalties covered by the legislation
| Tax | Penalty |
| Income tax or capital gains tax (tax year 2009-10 and prior) | Surcharge under section 59C(2) or (3) of TMA 1970 |
| Income tax or capital gains tax (tax year 2010-11 onwards) | Sch 56 FA2009 |
| Value added tax | Surcharge under section 59(4) or 59(4) of VATA 1994 |
| Aggregates Levy | Penalty interest under paragraph 5 of Schedule 5 to FA 2001 |
| Climate change levy | Penalty interest under paragraph 82 of schedule 6 to FA2000 |
| Landfill tax | Penalty interest under paragraph 27(2) of schedule 5 to FA 1996 |
| Insurance premium tax | Penalty under paragraph 15(2) or (3) Schedule 7 to FA 1994 which is payable by virtue of paragraph 15 (1) (a) of that schedule |
| Any duty or excise | Penalty under section 9(2) or (3) of FA 1994 which is imposed for failure to pay an amount of any duty of excise or an amount payable on account of any such duty |
Conditions required for a suspension
In order for any of the penalties above to be suspended when payment is made late customers must satisfy all of the following conditions
they must approach us before they become liable for the penalty
we must agree to a time to pay arrangement
the customer must adhere to the arrangement and comply with any conditions of the arrangement.