PART 6PAYE SETTLEMENT AGREEMENTS
Interest
Interest on unpaid taxI1115
1
This regulation applies if an employer has not paid to the Inland Revenue by the due date (as defined by regulation 109(2)) the full amount for which the employer is liable under this Part.
2
The unpaid amount carries interest at the prescribed rate from the due date until payment (“the interest period”).
3
Paragraph (2) applies even if the due date is a non-business day as defined by section 92 of the Bills of Exchange Act 188252.
4
Any change made to the prescribed rate during the interest period applies to the unpaid amount from the date of the change.
5
Interest is recoverable as if it were an amount payable under the PSA.
Interest on overpaid taxI2116
1
This regulation applies if tax in respect of F1a tax year to which a PSA relates is repaid to the employer after the due date (as defined by regulation 109(2)).
2
The tax repaid carries interest at the prescribed rate from the later of—
a
the due date F2for a tax year, and
b
the date on which the tax was paid,
until the order for the repayment is issued (“the interest period”).
3
Any change made to the prescribed rate during the interest period applies to the tax repaid from the date of the change.
4
“The prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of ICTA55.