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Hello sir,
For the year ended 30 June 2021, Forgetful Ltd had a corporation tax liability of £166,250,
which it did not pay until 31 July 2022. Forgetful Ltd is not a large company.
How much interest will Forgetful Ltd be charged by HM Revenue and Customs (HMRC) in
respect of the late payment of its corporation tax liability for the year ended 30 June 2021?the question above is in the exam kit.
i completely understand the workings£166,250 × 2.6% × 4/12 = £1,441 (period 1 April 2022 to 31 July 2022)
However after this working the final answer is
1,524 pounds.i don’t understand where that comes from as the working was only until 1441.
Need assistance please.
thank youThis would appear to be an updating error – something that I am acutely aware can happen when updating the study material to the latest Finance Act!
The calculations shown are indeed correct for FA 2021 where the interest rate is 2.6% – but back in FA 2020 the interest rate was 2.75% – so it appears it is simply that the final answer has not been changed from last year’s material
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