Payment dates, Interest and Penalties

Question 1

When are the two payments on account of income tax for the tax year made? The first on 31 January in the relevant tax year

Answer 1

and the second on 31 July after the tax year (TMA 1970

Question 2

What percentage of the previous year’s tax due is each payment on account? 50% of the previous year’s tax due

Answer 2

but only in respect of income tax

Question 3

When is the balancing payment due? On 31 January after the tax year (TMA 1970

Answer 3

s.59B)

Question 4

What happens if tax is paid late? It attracts interest from the due date to the date of payment (FA 2009

Answer 4

s.101)

Question 5

What is the penalty for payment more than 30 days late? 5% (FA 2009

Answer 5

Sch 56)

Question 6

What is the additional penalty for payment more than 5 months after the first penalty? Additional 5%

Question 7

What is the additional penalty for payment more than 11 months after the first penalty? Additional 5%

Question 8

Do late payments on account attract separate penalties? No

Answer 8

they do not attract separate penalties

Question 9

What are the taxpayer’s grounds for appeal if penalties for late notification

Answer 9

late filing