Would it be possible to tell me how payment on accounts and balancing payments are calculated please?
See OT Course Notes page 163 for note and example
Ok, thank you.
Also interest charged on late payment of tax is at a rate of 3% please?
Penalty for late payment of tax is the following please:
- if more than 1 month late – 5%
- further penalties of 5% if unpaid after 6 months & again 12 months
- maximum penalty is difference between amounts actually paid on account & amounts that should have been paid on account?
Is the above all correct? Also what is the difference between interest and penalty please? When will they be charged?
Interest is charged at 3% and penalties payable as stated for late payment except that there are no penalty payments for late payments on account just the interest charge – see OT Course Notes page 164!! Interest is charged on the amount outstanding from the date due until date paid whereas a penalty payment is a set amount whenever the amount is paid.
Ok thank you!
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