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HMRC internal manual

Excise Statutory Interest Manual

From
HM Revenue & Customs
Updated
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Official error: the applicable period

As in undue delay cases the applicable period is the period for which interest is determined as being payable. Generally the start date for the applicable period is the date the erroneous payment was made.

For each of the relevant paragraphs of schedule 3 described at ESIM4200 however the circumstances are slightly different:

  • Where the relevant paragraph is 7, the applicable period starts with the date the payment was received by HMRC.
  • Where the relevant paragraph is 8 the applicable period starts with the date HMRC might reasonably have been expected to authorise the claim apart from the error had one been submitted. Reasonable is not set in law therefore each case must be considered on its individual circumstances.
  • Where the relevant paragraph is 9, the applicable period starts with the date HMRC might reasonably have been expected to authorise the claim apart from the error had one been submitted. Reasonable is not set in law therefore each case must be considered on its individual circumstances.
  • Where the relevant paragraph is 10, the applicable period starts with the date the second or third condition set out in paragraph 1 of schedule 3 FA 2001 (payment by way of excise duty that wouldn’t have otherwise been paid) or the second condition set out in paragraph 2 (although entitled a person is unable to use rebated oil) was met.

In all of the above relevant paragraphs the applicable period ends on the date HMRC authorise the repayment

In some circumstances certain delays in authorising the principal repayment claim which were not HMRC’s fault can be left out of account when determining the applicable period, see ESIM4500. As long as the taxpayer has acted reasonably statutory interest will be payable for the full applicable period.

FA 2001