Interest on late payment of VAT

Interest on late payment of VAT

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Is the interest on late payment of VAT an allowable expense for corporation tax? 

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Euan's picture
By Euan MacLennan
08th Nov 2011 13:06

No

Interest paid under s.74 VATA 1994 in connection with VAT assessments is not deductible for corporation tax purposes.  See BIM31610.

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By pawncob
08th Nov 2011 17:44

HMRC lies

Which gives the lie to the HMRC statement that it "represents commercial restitution", when it's really a non deductible penalty.

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