The following Tax practice note Produced in partnership with Philip Rutherford provides comprehensive and up to date legal information covering:
FORTHCOMING CHANGE: HMRC has consulted on the introduction of a new model that will replace the current late payment penalties with a hybrid regime of penalties and penalty interest. Half the penalty, which will be an as yet unspecified percentage of the unpaid tax, will arise when a payment is late by 15 days; the second half of the penalty will arise when a payment is late by 30 days; followed by penalty interest from 30 days (at a rate not yet set) (in addition to late payment interest). Suspension of penalties will be available where there are suitable time to pay arrangements put in place with HMRC. These changes were intended to be in Finance Bill 2019 (see News Analysis: Legislation day: Draft Finance Bill 2019—Tax administration) but at Budget 2018 the government announced that they would be deferred to a future Finance Bill.
This Practice Note is about the penalty regime in the Finance Act 2009 (FA 2009) for the late payment of:
income tax and Class 1 NICs via pay as you earn (PAYE)
student loan deductions
income tax due under the construction industry scheme (CIS), and
Class 1A and Class 1B NICs
Late paid tax will also incur interest, see Practice Note: Interest on late paid tax.
The calculation of late payment penalties depends on whether the tax is payable:
monthly or quarterly
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Dividends involve a distribution of cash or a distribution of non-cash assets (known as a distribution in kind or a distribution in specie).A scrip dividend (in a tax context, sometimes referred to as a stock dividend) allows a shareholder to receive new shares in a company as an alternative to a
ContractWhere a contract is made by two or more parties it may contain a promise or obligation made by two or more of those parties. Any such promise may be:•joint•several, or•joint and severalWhether an undertaking is joint, several, or joint and several in contract is a question of construction
What is QOCS?Qualified one-way costs shifting (QOCS) was introduced on 1 April 2013 as part of the Jackson costs reforms following the removal of a claimant’s right to recover additional liabilities from the defendant, ie success fees and after the event (ATE) insurance premiums. The relevant CPR
STOP PRESS: The Corporate Insolvency and Governance Act 2020 contains provisions which, on a temporary basis (presently until 31 December 2020) impose significant limitations on the ability for a creditor to seek a winding-up order against a company. For further reading, see Practice Note: Corporate
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.