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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Interest: Payment

You must check whether, and from which date, the FA 2009 interest rules apply to the tax or duty you are dealing with. See CH140160 for full details.

This page explains what ‘payment’ means for interest purposes.

Late payment interest

Late payment interest is charged until the late payment interest end date, see CH140190, which includes the date when payment is made.

In addition to a physical payment, the term ‘payment’ includes an amount that is set off against an amount payable by HMRC. In these situations, the payment date is the date when the set-off takes effect.

Repayment interest

Repayment interest is paid until the repayment interest end date, see CH140190, which includes the date when repayment is made.

In addition to a physical payment or repayment by HMRC, the terms ‘payment’ and ‘repayment’ include an amount that is set off against an amount payable to HMRC by that person, or another person. In these situations, the payment or repayment date is the date when the set-off takes effect.

FA09/S101(9)

FA09/S102(8)(b)