Practice assessment 2 task 7 a

kelly2021

Hello

Can anyone please let me know how to calculate daily penalty and interest based penalty? Thank you very much.

mahbubdf

Hi, no one reply this question. Please can any explain the answer. I do not understand as well

mahbubdf

Practice assessment 2 task 7 a

Pian32

So you have different types and timings for the penalties that all add together.

The filing penalties are:

You have the £100 fixed immediate.
You then are charged £10 a day after 3 months until you hit 90 days (max £900). This will start on the 1st May XX.
There is then a further 300/5% (higher) if it's 6 months late (1st August XX)
and another 300/5% (higher) at 12 months late (1st Feb XY)

The interest based penalty in (a) is referring to the 300/5% sections


Late payment is based on amount outstanding and is applied:

30 days late - 5% outstanding
6 months - a further 5%
12 months - a futher 5%