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HMRC internal manual

Compliance Handbook

HM Revenue & Customs
, see all updates

Penalties for Failure to Pay on Time: Rules for specific taxes: Bank Payroll Tax (BPT): Overview

The penalty rules for failure to pay Bank Payroll Tax (BPT) on time start on 31 August 2010 and apply to the failure of a person to make payments of BPT in full and on time.

To decide whether a person is liable to a penalty you need to know the due date and the penalty date.

The due date for an amount of BPT shown on a BPT return is 31 August 2010.

The penalty date is normally the day after the due date, but see CH153700 where the BPT is payable under an assessment or determination or as a result of the amendment or correction of a BPT return.

A person is liable to

  • an initial penalty if an amount of BPT is unpaid at the penalty date, and
  • two further penalties if an amount remains unpaid 5 and 11 months after the penalty date.