Sarah Stenton and Lisa Vanderheide (Stewarts) examine HMRC’s approach to the charging of interest, and argue that it's time for a change.
The poor relative
Interest can often be viewed as the poor relative when it comes to settling with HMRC. It lacks the interesting technicalities of many tax negotiations and similarly the behaviour-based negotiations for mitigating a tax related penalty. Overlook interest at your peril however as it is increasingly becoming one of the most expensive components of HMRC settlements.
The relevant legislation can be found in TMA 1970:
s 86 for interest on overdue income tax and capital gains tax;
s 87 for interest on overdue income tax deducted at source; and
s 87A for interest on overdue corporation tax.
It is notable that there have not been any significant amendments to the legislation since it...
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Sarah Stenton and Lisa Vanderheide (Stewarts) examine HMRC’s approach to the charging of interest, and argue that it's time for a change.
The poor relative
Interest can often be viewed as the poor relative when it comes to settling with HMRC. It lacks the interesting technicalities of many tax negotiations and similarly the behaviour-based negotiations for mitigating a tax related penalty. Overlook interest at your peril however as it is increasingly becoming one of the most expensive components of HMRC settlements.
The relevant legislation can be found in TMA 1970:
s 86 for interest on overdue income tax and capital gains tax;
s 87 for interest on overdue income tax deducted at source; and
s 87A for interest on overdue corporation tax.
It is notable that there have not been any significant amendments to the legislation since it...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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