ExpertMedium2 marksMultiple Choice
ACCA · Question 01 · The UK tax system and its administration
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)?
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)?
Answer options:
A.
£100
B.
£1,000
C.
£1,300
D.
£400
How to approach this question
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).
Full Answer
C.£1,300✓ Correct
The deadline for electronic filing for 2022/23 is 31 January 2024. Filing on 14 August 2024 is more than 6 months late. Penalties: £100 (1 day late) + £900 (£10/day for 90 days from 1 May) + £300 (6 months late, greater of 5% of tax or £300). Total = £1,300.
Common mistakes
Forgetting the daily penalties or assuming the 6-month penalty doesn't apply if tax is paid.
Practice the full ACCA TX — Taxation Practice Exam 3
32 questions · hints · full answers · grading
More questions from this exam
Q02Section A
'Green Acres Co-op' is an agricultural cooperative operating as a partnership. For the...EasyQ03Section A
Sylvia owns a large converted barn which is her main residence. During 2023/24, she le...MediumQ04Section A
'NovaTech Ltd', a tech startup, provides the following benefits to its employees:
1. A...MediumQ05Section A
Dr. Aris, a marine biologist, is provided with a petrol company car by his employer. T...HardQ06Section A
Jonah, a retired deep-sea welder, sold an antique diving helmet (a non-wasting chattel...Medium