HMRC has expressed its intention to change the way it charges late payment interest from immediate effect on certain UK-source interest or royalties payments to a person taxable in an EU member state.
Where a company pays yearly interest without withholding income tax, it now considers that the payer will still have to account for any withholding tax due in respect of payments of interest made before treaty clearance was notified. Late payment interest would then accordingly accrue under TMA 1970 s 87 on any unpaid tax, from the date the withholding tax was due until the date of payment.
HMRC has expressed its intention to change the way it charges late payment interest from immediate effect on certain UK-source interest or royalties payments to a person taxable in an EU member state.
Where a company pays yearly interest without withholding income tax, it now considers that the payer will still have to account for any withholding tax due in respect of payments of interest made before treaty clearance was notified. Late payment interest would then accordingly accrue under TMA 1970 s 87 on any unpaid tax, from the date the withholding tax was due until the date of payment.