ACCA Strategic Professional · Advanced Taxation (UK) · Statutory obligations, time limits and the implications of non-compliance
Brightwell Ltd paid VAT of £50,000 exactly 25 days after the due date. Using the late payment penalty table in the ATX-UK tax tables, what is the penalty?
The penalty is £1,500. A VAT payment made 16 to 30 days late is charged at 3% of the tax paid late, and 3% of £50,000 is £1,500. The 6% rate and daily penalty apply only beyond 30 days.
- A£1,500Correct
- B£3,000
- CNil
- D£3,000 plus a daily penalty at an annual rate of 10%
Explanation
Payment 16 to 30 days late attracts a 3% penalty. 3% x £50,000 = £1,500. The 6% penalty and daily charge apply only where payment is more than 30 days late, so £3,000 is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Statutory obligations, time limits and the implications of non-compliance shows your real accuracy, how long you take and where you lose marks.
More Statutory obligations, time limits and the implications of non-compliance questions
- Which statement about the minimum penalty for a careless error is correct under the standard penalties for errors table?
- Chen was not previously UK resident. In 2025/26 she spends 100 days in the UK and has two UK ties. In 2026/27 she is expected to spend 130 d…
- Zeta Ltd paid its VAT liability of £40,000 exactly 22 days after the due date. No earlier late payments have been recorded. Using the late p…
- Brindle Ltd paid VAT of £50,000 exactly 40 days late. Applying the ATX-UK rules (Finance Act 2025), which statement describes the penalty po…
- Tariq Ltd has taxable supplies of £92,000 in the last 12 months and is not VAT registered. Under the registration limit in the ATX-UK tax ta…
- Mercia Ltd paid its VAT liability of £40,000 exactly 10 days after the due date. Under the late payment penalty rules in the ATX-UK tax tabl…