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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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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. The 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.

The due date for payment is 30 June 2015. The penalty date is 1 July 2015. The penalties are as follows

  Payment Unpaid SDRT Penalty
       
Amount due at 1 June 2015 (unpaid at 1 July 2015)   £50,000  
Initial penalty of 5% on £50,000 at 2 July 2015     £2,500
Payment 7 November 2015 £30,000 £20,000  
5 month further penalty of 5% on £20,000 at 2 December 2015     £1,000
Payment 7 February 2016 £10,000 £10,000  
11 month further penalty of 5% on £10,000 at 2 June 2016     £500
Total penalty     £4,000