PART 6PAYE SETTLEMENT AGREEMENTS
Interest
Interest on overpaid taxI1116
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.