SCHEDULES

SCHEDULE 56Penalty for failure to make payments on time

Amount of penalty: occasional amounts and amounts in respect of periods of 6 months or more

3

(1)

This paragraph applies in the case of—

(a)

a payment of tax falling within any of items 1, 3 and 7 to 24 in the Table,

(b)

a payment of tax falling within item 2 or 4 which relates to a period of 6 months or more, and

(c)

a payment of tax falling within item 2 which is payable under regulations under section 688A of ITEPA 2003 (recovery from other persons of amounts due from managed service companies).

(2)

P is liable to a penalty of 5% of the unpaid tax.

(3)

If any amount of the tax is unpaid after the end of the period of 5 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

(4)

If any amount of the tax is unpaid after the end of the period of 11 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

4

(1)

This paragraph applies in the case of a payment of tax falling within item 5 or 6 in the Table.

(2)

P is liable to a penalty of 5% of the unpaid tax.

(3)

If any amount of the tax is unpaid after the end of the period of 3 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.

(4)

If any amount of the tax is unpaid after the end of the period of 9 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.