Penalties for Non-Compliance calculates late payment interest and states the penalties that can be charged.
Penalties for Non-Compliance
a. Calculate late payment interest and state the penalties that can be charged.
Penalties imposed are dependent on the tax payer’s behaviour:
- If the tax payer makes a genuine mistake, no penalties will be applied
- If the tax payer fails to take reasonable care, a penalty of 30% will be applied
- If the tax payer makes an error deliberately, a penalty of 70% will be applied
- If the tax payer tries to hide error, a penalty of 100% will be applied
If the taxpayer makes an unprompted disclosure to HMRC, the penalty may be reduced.
Quick Tip: Income tax evasion is a statutory offence and may be punished by up to seven years in prison, a fine or both.
Resources Used
- BPP’s ACCA Taxation (TX) Study Text
- ACCA’s Taxation (TX) Syllabus and Study Guide
- Open Tuition’s ACCA Taxation (TX) Study Guide
- Acowtancy’s ACCA Taxation (TX) Textbook
Quick Links
- My ACCA Exams Journey
- Preparing for ACCA Taxation (TX)
- ACCA Taxation (TX) Syllabus and Study Guide
- A1: The UK Tax System and its Administration | The Overall Function and Purpose of Taxation in a Modern Economy (ACCA TX)
- A2: The UK Tax System and its Administration | Principal Sources of Revenue Law and Practice (ACCA TX)
- A3: The UK Tax System and its Administration | The Systems for Self-Assessment and the Making of Returns (ACCA TX)
- A4: The UK Tax System and its Administration | The Time Limits for the Submission of Information, Claims and Payment of Tax, Including Payments on Account (ACCA TX)
- A5: The UK Tax System and its Administration | The Procedures Relating to Compliance Checks, Appeals and Disputes (ACCA TX)
About Accounks
Accounks is an ACCA student blog that follows my journey to the ACCA qualification.
