CH155498 - Penalties for failure to pay on time: rules for specific taxes: Diverted Profits Tax (DPT): penalties - example
Example of initial and further penalties on an amount of Diverted Profits Tax
A HMRC compliance officer issues a charge notice to Buymenow PLC on 1 June 2015 showing that the company is due to pay £50,000 DPT. »Ê¹ÚÌåÓýapp company fails to make payment within 30 days of the charge notice but makes some payments at later dates, as shown in the table below.
»Ê¹ÚÌåÓýapp due date for payment is 30 June 2015. »Ê¹ÚÌåÓýapp penalty date is 1 July 2015. »Ê¹ÚÌåÓýapp penalties are as follows
| Ìý | Payment | Unpaid SDRT | Penalty |
|---|---|---|---|
| Amount due at 1 June 2015 (unpaid at 1 July 2015) | £50,000 | Ìý | Ìý |
| Initial penalty of 5% on £50,000 at 2 July 2015 | Ìý | £2,500 | Ìý |
| Payment 7 November 2015 | £30,000 | £20,000 | Ìý |
| 5 month further penalty of 5% on £20,000 at 2 December 2015 | Ìý | £1,000 | Ìý |
| Payment 7 February 2016 | £10,000 | £10,000 | Ìý |
| 11 month further penalty of 5% on £10,000 at 2 June 2016 | Ìý | £500 | Ìý |
| Total penalty | Ìý | £4,000 | Ìý |