TC09528 - [2025] UKFTT 01069 (TC)

5(1)A penalty is payable under this paragraph if–

(a)the tax due is not paid in full before the end of the 15 day period, and

(b)the 15 day time to pay condition is not met.

5(2)If the tax due is paid in full after the end of the 15 day period but before the

end of the 30 day period, the amount of the penalty is amount A.

5(3) If the tax due is not paid in full before the end of the 30 day period, the

amount of the penalty is–

(a)if the 30 day time to pay condition is met, amount A, and

(b)if the 30 day time to pay condition is not met, the total of amount A and amount B,

(but see paragraph 7).

5(4) Amount A is 2% of so much of the tax due as is unpaid at the end of the 15 day period.

5(5) Amount B is 2% of so much of the tax due as is unpaid at the end of the 30 day period.

12(1) Liability to a penalty under this Schedule does not arise in respect of a failure to make a payment if the person satisfies HMRC (or on appeal, the tribunal) that the person had a reasonable excuse for the failure.

12(2) For this purpose–

(a)an insufficiency of funds is not a reasonable excuse unless attributable to events outside the personʼs control,

(b)where the person relies on another person to do anything, that is not a

reasonable excuse unless the first person took reasonable care to avoid the failure,

and

(c)where the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.