Interest: taxes and duties covered
You must check whether, and from which date, the FA 2009 interest rules apply to the tax or duty you are dealing with. See below for full details.
Late payment interest and repayment interest apply to any amount that is payable
- by a person to HMRC, or
- to a person by HMRC,
- that amount is payable ‘under or by virtue of an enactment’, see CH140240, and
- a Treasury Order has appointed a day from which the interest rules apply for a particular tax.
Eventually, all taxes, duties (other than customs duties), penalties and surcharges will be amounts that are subject to late payment interest and repayment interest because they are all due under or by virtue of an enactment. However, the interest provisions currently only apply to certain taxes and any associated penalties, see below. This is because they are the only taxes for which there is an appointed day from which the rules apply.
What the interest provisions currently apply to
The interest provisions currently apply to the following taxes, from the dates shown.
|Tax or duty||Date from which interest provisions apply|
|Bank payroll tax and any associated penalties|
|31 August 2010|
|Income tax or capital gains tax or other amount in relation to which|
a) a return falls to be made under
Section 8 TMA 1970 (personal return),
Section 8A TMA 1970 (trustee’s return), or
Section 12AA TMA 1970 (partnership return), or
b) an assessment is made under Section 29 TMA 1970
and any associated penalties.
c) a simple assessment is made under section 28H TMA 1970.
| ITSA return ended 5 April 2011
(due to be filed on or before 31 October 2011, or 31 January 2012 if filed electronically)
Will be introduced with effect from 2016-17 - check specific charging provision if required.
|Income Tax - amounts due under the PAYE regulations, including Class 1 NIC and Student Loan Deductions||6 April 2014|
|Construction Industry Scheme Deductions||6 April 2014|
|Machine Games Duty||1 February 2013|
|Annual tax on Enveloped Dwellings|
|1 October 2013|
|All taxes: where a penalty is charged to a dishonest tax agent||1 April 2013|
Where the interest provisions apply to income tax or capital gains tax, they also apply to Class 4 National Insurance Contributions (NIC) and student loan payments that are included in the tax calculation.
What the interest provisions do not apply to
The FA 2009 interest provisions do not currently apply to any taxes or duties that aren’t listed above.
There is no intention to apply the interest provisions to customs duties.
Even once the interest provisions have been extended to all taxes, duties, penalties and surcharges, they will not apply to late payment interest and repayment interest. This means that interest is not charged or paid on interest.