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HMRC internal manual

Enquiry Manual

HM Revenue & Customs
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SA Surcharge: Interest on Unpaid Surcharges


TMA70/S59C only applies to the 2009-10 tax year, and any previous tax year.

See CH155000+ for 2010-11 and subsequent tax years

S59C(6) provides that any unpaid surcharge carries interest from the end of the period of 30 days beginning with the day it is imposed.

This is not S86 interest - it is S59C(6) interest - but the rate of interest is the same.

As for S86, there is no provision for the mitigation of interest on a surcharge nor any right of appeal - though of course a successful appeal against the surcharge itself would see it discharged and the interest would disappear with it automatically.

From a practical point of view

  • in a case being settled by formal statutory proceedings, the computer program would normally calculate and impose interest on late-paid surcharges automatically. The Enquiry Officer should however check the SA record and see the SA Manual (SAM) as appropriate
  • in a contract settlement interest on late-paid surcharges will be very rare, arising only on a surcharge that has already been formally imposed (and not discharged when a tax-geared penalty displaced it)
  • until a surcharge has been formally imposed, and another 30 days have passed, there can be no S59C(6) interest.

There is no surcharge on unpaid surcharge.