MTT54100 - Administration: Payments and interest: Payment date and interest
MTT liabilities must be paid in full within 15 months beginning with the day after the end of the accounting period for which it is due. This is extended to 18 months for the first accounting period for which the group is a qualifying group.
The payment date aligns with the filing date for the self-assessment return (see MTT53000) and the information return (see MTT52000).
This is set out in paragraphs 32-33, schedule 14 to Finance (No.2) Act 2023.
Late payment interest
If amounts are not paid by the payment date, interest will accrue from the day after the payment date. The rate is provided in regulations made under section 178 of the Finance Act 1989.
Repayment interest
Repayment interest is due on an amount of tax paid which is more than was due and is subsequently repaid by HMRC. This might happen where there is an amendment to a return (see MTT53000) or as a result of a claim for overpayment relief (see MTT54300).
Repayment interest is due from the later of:
- the date the payment was due, and
- the day on which the amount the paid.
The rate is provided in regulations made under section 178 of the Finance Act 1989.
Example
XYZ Group’s accounting periods run to 31 December each year. The group becomes a qualifying group for the first time for the period ending 31 December 2030. The group registers on 1 June 2031.
The filing date for the group’s first self-assessment return and information return is 30 June 2032. This is also the payment date.
For subsequent periods, the filing and payment date will be 31 March, which is 15 months after the end of the accounting period.
Short first periods
The filing date for a return cannot fall before 30 June 2026. Where the deadline would fall before this date, the filing date will instead be 30 June 2026.
Because the payment and filing dates are aligned, the payment date will also be 30 June 2026 in this scenario.