Assessing: calculating interest: general interest charge on IOP (WIR) cases
You should only charge interest if an instalment is being paid late:
- on that instalment only,
- from the due date of that instalment to the date of payment (or calculation).
1st instalment of £1,000 due 30 September 2010 (calculated and paid on time)
On 1 December 2011 you calculate the 2nd instalment of £1,000 which was due 30 September 2011. You should charge interest only on:
- the tax to pay (£1,000) from 1 October 2011 to 1 December 2011.