Market leading insight for tax experts
View online issue

Change of HMRC approach to certain late-payment interest

printer Mail

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’s International Manual at INTM413230, now states that since Brexit, HMRC is no longer bound by the 2018 decision in TTL EOOD (Case C‑553/16), where HMRC had formerly accepted that it was precluded from charging this s 87 late-payment interest.

Issue: 1618
Categories: News
EDITOR'S PICKstar
Top