Question 1

Section A

Marcus is a freelance AI developer. He submitted his electronic self-assessment tax return for the tax year 2022/23 on 14 August 2024. He had paid all his tax liabilities on time.

What is the total late filing penalty Marcus will be charged by HM Revenue & Customs (HMRC)?

Accepted Answer

Calculate the months of delay from 31 January 2024 to 14 August 2024. Apply the £100 initial penalty, the £10 daily penalty (max 90 days), and the 6-month penalty (£300).

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Forgetting the daily penalties or assuming the 6-month penalty doesn't apply if tax is paid.

Section A

Marcus is a freelance AI developer. He submitted his electronic self-assessment tax return for the tax year 2022/23 on 14 August 2024. He had paid all his tax liabilities on time.

What is the total late filing penalty Marcus will be charged by HM Revenue & Customs (HMRC)?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 3

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