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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
, see all updates

Penalties for failure to pay on time: rules for specific taxes: Diverted Profits Tax (DPT): penalties - failure to pay all or part of amounts due - overview

If a person fails to make a full payment of DPT by the payment date, they become liable to a penalty on the amount unpaid.

The penalties for failing to pay DPT in full and on time are

  • an initial penalty of 5% for tax unpaid at the penalty date, see CH155489,
  • a penalty of 5% for tax unpaid at 5 months after the penalty date, see CH155492, and
  • a penalty of 5% for tax unpaid at 11 months after the penalty date, see CH155492.

So a failure to pay that continues for 11 months after the penalty date can incur all of these penalties on the same unpaid tax.

It is important to distinguish between

  • the payment date for payment - the date when the business needs to pay the charge notice, and
  • the penalty date - which is the first date on which a penalty is chargeable.

FA09/SCH56/PARA3