CH155514 - Penalties for failure to pay on time: rules for specific taxes: Plastic Packaging Tax (PPT): penalties – failure to pay all or part of amounts due – overview

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

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

  • an initial penalty of 5% for PPT unpaid at the penalty date, see CH155515 and
  • two further penalties of 5% each for PPT unpaid at 5 and 11 months after the penalty date, see CH155516

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

It is important to distinguish between

  • the due date - the date when the person needs to pay the PPT, 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