Pre-enforcement: interest in enforcement proceedings: interest in contract settlement cases
Interest is charged on late payment of a contract settlement. It is contract interest, not statutory interest under the Taxes Management Act 1970, although it is charged at TMA70/S86 rates. The amount of a contract settlement that attracts late payment interest will be specified in the dedicated box on form 94A(2).
It may be charged in all contract cases and some non-contract cases, from the due date or, where the contract specifies payment may be made by instalments, from the date of each instalment. The normal rules about aggregation of interest apply.
SAFE will raise interest in contract settlement cases.