The Scheme: secondary legislation: regulation 14
This regulation deals with interest payments on overdue amounts.
This regulation should be applied if the contractor has not paid over to HMRC the total amount due in respect of the tax year by the reckonable date: SI2005/2045 reg 14(1).
Any amounts still outstanding from the contractor at the reckonable date will be subject to interest at the prescribed rate: SI2005/2045 reg 14(2).
Para (2) applies even if the reckonable date falls on a non-business day: SI2005/2045 reg 14(3).
Para (2) does not apply where HMRC have issued a direction under SI2005/2045 reg 9(5): SI2005/2045 reg 14(4).
If the prescribed rate of interest changes, the new rate should be applied to any amounts still outstanding from the date of the change: SI2005/2045 reg 14(5).
The ‘prescribed rate’ is defined at SI2005/2045 reg 14(6).
The ‘reckonable date’ is 17 days after the end of the tax year, if payment is made electronically, or 14 days after the end of the tax year in any other case: SI2005/2045 reg 14(7).
ENABLING PROVISION – FA04/S71 (1)