Paragraph 5 I1 I2 I3 I4 I5

(1)

A penalty is payable under this paragraph if—

(a)

the tax due is not paid in full before the end of the 15 day period, and

(b)

the 15 day time to pay condition is not met.

(2)

If the tax due is paid in full after the end of the 15 day period but before the end of the 30 day period, the amount of the penalty is amount A.

(3)

If the tax due is not paid in full before the end of the 30 day period, the amount of the penalty is—

(a)

if the 30 day time to pay condition is met, amount A, and

(b)

if the 30 day time to pay condition is not met, the total of amount A and amount B,

(but see paragraph 7).

(4)

Amount A is F13% of so much of the tax due as is unpaid at the end of the 15 day period.

(5)

Amount B is F23% of so much of the tax due as is unpaid at the end of the 30 day period.

Annotations

F1: Word in Sch. 26 para. 5(4) substituted (31.5.2025) by The Finance Act 2021 (Increase in Schedule 26 Penalty Percentages) Regulations 2025 (S.I. 2025/589), regs. 1(2), 2(2)(a) (with reg. 1(3))
F2: Word in Sch. 26 para. 5(5) substituted (31.5.2025) by The Finance Act 2021 (Increase in Schedule 26 Penalty Percentages) Regulations 2025 (S.I. 2025/589), regs. 1(2), 2(2)(b) (with reg. 1(3))

I1: Sch. 26 para. 5 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)
I2: Sch. 26 para. 5 in force at 6.4.2024 for specified purposes by S.I. 2024/440, reg. 2(2)
I3: Sch. 26 para. 5 in force at 12.11.2024 for specified purposes by S.I. 2024/1132, reg. 2
I4: Sch. 26 para. 5 in force at 28.3.2025 for specified purposes by S.I. 2025/399, reg. 2
I5: Sch. 26 para. 5 in force at 1.4.2026 for specified purposes by S.I. 2026/370, reg. 3(2)

C1: Sch. 26 modified (1.3.2024) by 1994 c. 23, Sch. 9ZF para. 13A (as inserted by The Value Added Tax (Distance Selling) (Amendments) Regulations 2024 (S.I. 2024/128), regs. 1(1), 6(6) (with reg. 1(2)))
C2: Sch. 26 applied (1.4.2026) by S.I. 2009/470, reg. 36(2) (as inserted by The Education (Student Fees, Awards, Support and Loan Repayments) (Amendment) Regulations 2026 (S.I. 2026/130), regs. 1(4), 34(b))