A6.922 Interest

PAYE and Construction industry scheme (CIS)

Interest is charged on late payment of:

  1.  

    •     income tax and Class 1 National Insurance contributions deducted at source under the PAYE regulations1, and

  2.  

    •     amounts deducted2 by a contractor under the construction industry scheme3

from the due date until the date of payment. Such interest is not deductible in computing profits or losses for tax purposes4.

See also E4.11119.

2014/2015 and subsequent tax years

The FA 2009 harmonised interest regime applies to amounts due and payable for 2014/15 and subsequent years, and interest is charged in-year for each tax period, rather than just on amounts

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