CH153680 - Penalties for Failure to Pay on Time: Rules for specific taxes: Bank Payroll Tax (BPT): Penalties: Example
Example of initial and further penalties on an amount of Bank Payroll Tax
Secure Bank Ltd delivers a return showing it is due to pay £450,000 of Bank Payroll Tax on 31 August 2010, but it fails to make the payment. »Ê¹ÚÌåÓýapp company makes some payments at later dates, as shown in the table below.
»Ê¹ÚÌåÓýapp due date is 31 August 2010. »Ê¹ÚÌåÓýapp penalty date is 1 September 2010. »Ê¹ÚÌåÓýapp penalties are as follows.
| Ìý | Payment | Unpaid BPT | Penalty |
|---|---|---|---|
| Amount due at 31 August 2010 | £450,000 | Ìý | Ìý |
| Initial penalty of 5% on £450,000 at 1 September 2010 | Ìý | £22,500 | Ìý |
| Payment 1 December 2010 | £300,000 | £150,000 | Ìý |
| 5 month further penalty of 5% on £150,000 at 1 February 2011 | Ìý | £7,500 | Ìý |
| Payment 1 July 2011 | £100,000 | £50,000 | Ìý |
| 11 month further penalty of 5% on £50,000 at 1 August 2011 | Ìý | £2,500 | Ìý |
| Total penalty | Ìý | £32,500 | Ìý |