Personal Tax 2010/11 Question, anyone able to help?

Focus888

Today's date is 15th January 2012

Margaret filed her 2009/10 tax return online on 25 November 2011

The assessment for 2009/10 showed a tax liability of £800, which has not yet been paid.

Discuss the penalties, interest or surcharges that may be applied by HMRC on Margaret for both the late filing of the tax return and the late payment of tax. Explain how any outstanding tax for 2010/11 may be collected by HMRC, based on the information given above.

The answer is £200 but i dont understand how this is calculated. Or the part about the late payment earning 10%.

From the book i get that its immediate £100 late submission charge and then depending on how late it is theres a extra charge depending on time but i dont understand how its £200.

Also regarding the 10% have they just grouped together the 3 month 5% and the 6 months 5% to just state 10% instead of writing it in detail.

Thanks for any replies.

guinea pig

Hi Focus,
Are you applying tax year 2010/11 answers to a 2009/10 question?
I'm currently studying for 2011/12, the late penalty for missing the return deadline is £100,
then if over 3 months late extra £10 per day,
if over 6 months late an additional £300 or 5% tax due if this is higher,
if over 12 months late a further £300 or 5% of tax due if higher
There is very little practice material for 2011/12 but I'm not looking at previous years, as its too confusing!
Good luck
GP

Focus888

Hi Guinea Pig, the question is definitely from the 2010 practice cba and the penalties are as you described which is why i dont understand how it comes up to £200. :001_unsure:

coojee

The 2010 practice CBA is based on the tax year 2009/10 when the penalties were £100 for being late and a further £100 for being more than 6 months late. It's confusing that the practice exam talks about it being January 2012 today. I guess what's happened is that they've tried to update the dates of an old paper and forgotten to alter the answers.

sampson

coojee wrote: »

The 2010 practice CBA is based on the tax year 2009/10 when the penalties were £100 for being late and a further £100 for being more than 6 months late. It's confusing that the practice exam talks about it being January 2012 today. I guess what's happened is that they've tried to update the dates of an old paper and forgotten to alter the answers.

That explains a lot. I had a similar question and a similar incorrect answer in the BPP question bank for fa2010, I spent ages trying to work out how they came up with that answer.