CH155510 - Penalties for failure to pay on time: rules for specific taxes: Soft Drinks Industry Levy (SDIL): penalties - example

Example of initial and further penalties on an amount of Soft Drinks Industry Levy

Fizz Pop Ltd delivers a return showing it is due to pay £90,000 of SDIL on 30 June 2020, but it fails to make the payment. The company makes some payments at later dates, as shown in the table below.

The due date is 30 June 2020. The penalty date is 1 July 2020. The penalties are as follows.

-	Payment	Unpaid SDIL	Penalty
Amount due at 30 June 2020	-	£90,000	-
Initial penalty of 5% on £90,000 at 1 July 2020	-	-	£4,500
Payment 1 September 2020	£50,000	£40,000	-
5 month further penalty of 5% on £40,000 at 1 December 2020	-	-	£2,000
Payment 1 January 2021	£20,000	£20,000	-
11 month further penalty of 5% on £20,000 at 1 June 2021	-	-	£1,000
Total penalty	-	-	£7,500