Section A: Objective Test

Marcus, a freelance graphic designer, submitted his electronic self-assessment tax return for the tax year 2023/24 on 14 August 2025. He paid his balancing payment of £4,200 on the same date. He had no reasonable excuse for the delay.

What is the total late filing penalty that Marcus will be charged by HMRC?

Answer options:

£100

£900

£1,000

£1,300

How to approach this question

Calculate the penalties chronologically: 1 day late, 3 months late (daily), and 6 months late.

Full Answer

D.£1,300✓ Correct

The deadline for electronic filing for 2023/24 is 31 January 2025. Marcus filed on 14 August 2025. 1. 1 day late (1 Feb 2025): £100 2. 3 months late (from 1 May 2025): £10 per day for max 90 days = £900 3. 6 months late (from 1 Aug 2025): Greater of 5% of tax due (5% x £4,200 = £210) or £300 = £300. Total late filing penalty = £100 + £900 + £300 = £1,300.

Common mistakes

Forgetting the £300 minimum for the 6-month penalty and just calculating 5% of the tax.

All questions Question 02

Practice the full ACCA TX — Taxation Practice Exam 1

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