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HMRC internal manual

COTAX Manual

HM Revenue & Customs
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Interest: interest objections and amendments: introduction

An objection to an interest charge is most likely to arise for:

  • late payment interest
  • debit interest.

You may also receive queries about credit interest where it is claimed that not enough has been given.

Any office can deal with a general interest enquiry, but you should refer late payment interest and debit interest objections to the appropriate office to consider.

Responsible offices do not consider objections but do deal with enquiries.

An enquiry is normally a factual question of a general nature, such as about the date from which interest is payable.

An objection involves considering whether the interest charge is correct or whether it needs to be amended. However, unless the interest charge is wrong, an objection to late payment interest and debit interest is normally dealt with on the basis that Section 87A TMA 1970 is mandatory.

An objection to interest must be dealt with quickly. As time passes, it is not unreasonable for the company to believe that the longer it takes to receive a response, the more likely it is that their objection is going to be upheld. It may therefore be more difficult to collect the late payment or debit interest where a reply upholding the interest charge is received late.