ACCA Applied Skills · Taxation (UK) · Penalties for non-compliance
Tariq's balancing payment of £6,400 for 2025/26 was due on 31 January 2027. He paid it on 20 February 2027. Which statement is correct?
No penalty is charged because the tax was paid within 30 days of the due date. Late payment interest is still charged from 31 January 2027 until the date of payment, because interest runs from the due date regardless of the penalty position.
- ANo penalty is charged, but late payment interest is chargedCorrect
- BA penalty of 5% is charged, being £320
- CA penalty of 2% is charged, being £128
- DLate payment interest only applies if the tax is more than 30 days late
Explanation
He paid 20 days after the due date, which is within 30 days, so no penalty arises. Interest still runs from 31 January 2027 until payment. The 5% penalty of £320 applies only when tax remains unpaid 30 days after the due date.
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