HMRC has updated its guidance Late payment interest if you do not pay VAT or penalties on time, adding a new section on the circumstances in which an objection can be raised against a late-payment interest charge. Although there is no right of appeal against interest (even in relation to outstanding VAT, under the harmonised regime from 1 January 2023), objections can be raised where:
HMRC has caused a mistake or there has been any unreasonable delay;
the relevant date or effective date of payment are disputed;
mitigating circumstances apply; or
the legislation is challenged.
These points reflect HMRC’s guidance on how its officers should deal with interest objections, as set out in HMRC's Debt Management and Banking Manual at DMBM404010.
The guidance also notes that HMRC will only accept an objection where the tax in question has been paid in full.
HMRC has updated its guidance Late payment interest if you do not pay VAT or penalties on time, adding a new section on the circumstances in which an objection can be raised against a late-payment interest charge. Although there is no right of appeal against interest (even in relation to outstanding VAT, under the harmonised regime from 1 January 2023), objections can be raised where:
HMRC has caused a mistake or there has been any unreasonable delay;
the relevant date or effective date of payment are disputed;
mitigating circumstances apply; or
the legislation is challenged.
These points reflect HMRC’s guidance on how its officers should deal with interest objections, as set out in HMRC's Debt Management and Banking Manual at DMBM404010.
The guidance also notes that HMRC will only accept an objection where the tax in question has been paid in full.
