CH140290 - Interest: payments on account

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.

HMRC charges late payment interest on amounts which remain unpaid after the due and payable date. This includes

• Payments on account of income tax under section 59A TMA1970, and
• VAT payments on account under section 28 VATA 1994,

Late payment interest applies to each individual payment on account and the balancing payment. This means that interest is charged on any POA amount which is not paid by the due date for the POA and on any balancing payment which is not paid by the due date for the balancing payment.

However, see CH142220 to CH142300 which explain the two situations where the amount on which late payment interest is charged differs from the amount used for the general rule, in respect of income tax payments on account.