Commentary

A6.430 Interest on tax underpaid

Administration and compliance

A6.430 Interest on tax underpaid

Interest and penalties when closing an enquiry

A6.430 Interest on tax underpaid

Interest is charged automatically at the prescribed rate on all tax paid late, regardless of the reason for that late payment. Any tax underpaid as a result of an enquiry therefore carries interest. The interest rate is prescribed by the Treasury and is charged from the date that the tax should have been paid up to the date that it is paid on conclusion of the enquiry1.

Large companies which make quarterly instalment payments pay a lower rate of late payment interest for the period from the date each instalment is due to the date the corporate tax becomes payable for the

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