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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employer returns: regulation 80 determinations: interest: Interest on tax overdue

Tax in Regulation 80 determinations is liable to an interest charge.

Prior to issuing a determination, the employer should be advised that unpaid PAYE attracts an interest charge. However, most of HMRC reminders already warn of interest.

But mentioning interest in a final communication with the employer may persuade the employer to send a return, make a payment and avoid HMRC raising a determination.

Under RTI for 2014-15 onwards, if the employer submits an Earlier Year Update (EYU) the reckonable date will be 19 / 22 April following the end of the tax year (PAYE Regulation 67H(2)) sets the due date as the Final Tax period of the year). So it will be advantageous to the employer in terms of the interest reckonable date to send the EYU.

You should tell employers that interest in the Regulation 80 determination will be charged

  • Under Regulation 82 IT-PAYE Regulations for 2013-14 and prior tax years and the reckonable date for interest is 19 / 22 of April after the tax year end
  • Under S101 of Finance Act 2009 for 2014-15 onwards and the reckonable date for interest is the 19 / 22 of the following month for each tax period.