Chapter 7 - CTSA Penalty Regime

Question 1

Penalties for Failure to Notify Changeability

Answer 1

Penalty is charged as a % of the amount of CT which is unpaid 12 months after the end of the accounting period. See joggers/leg for the penalty amounts

Question 2

Penalties for Late Returns

Answer 2

• Immediate £100 late filing penalty
• £10 a day up to 90 days where return > 3 months late
• Penalty of 5% of liability to tax (or £300 if greater) if return > 6 months late
• Additional penalties where returns are filed > 12 months late (see joggers/leg)

Question 3

Penalties for Failure to Keep Records or Provide Documents

Answer 3

A penalty of £3,000 per AP applies where there has been a failure to keep records for 6 years from AP end

A company failing to provide documents for the purpose of an enquiry is liable to a penalty of £300. If failure continues, further penalties of up to £60 per day may be imposed.

Question 4

Penalties for Incorrect Returns

Answer 4

The penalties are a percentage of lost revenue, see leg for rates.
A penalty for a careless error can be suspended for two years

Question 5

Penalties for Late Payment of Tax

Answer 5

For CT, a 5% penalty of outstanding tax is charged:

• after filing date of return
• where tax is outstanding more than 3 months after filing date
• where tax is outstanding more than 9 months after filing date

Question 6

General Note

Answer 6

SEE LEG, JOGGERS OR MANUAL