CH155506 - Penalties for failure to pay on time: rules for specific taxes: Soft Drinks Industry Levy (SDIL): penalties - failure to pay all or part of amounts due – overview

If a person fails to make a full payment of SDIL by the due date, they become liable to a penalty on the amount unpaid.

The penalties for failing to pay SDIL in full and on time are

• an initial penalty of 5% for SDIL unpaid at the penalty date, see CH155507, and
• two further penalties of 5% each for SDIL unpaid at 5 and 11 months after the penalty date, see CH155508.

So a failure to pay that continues for 11 months after the penalty date can incur all of these penalties on the same unpaid SDIL.

It is important to distinguish between

• the due date - the date when the person needs to pay the SDIL, and
• the penalty date - which is normally the day after the due date and the first date on which a penalty is chargeable for a tax period.

FA09/SCH56

FA17/Section 52