Interest charges

Interest charges

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I know the penalties charges by HMRC are not allowable for tax purposes. Is interest charged by HMRC for late payment is allowable for tax purposes?
Anon

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By Peter Cane
22nd May 2008 16:07

Only for companies
And then, only corporation tax interest is allowable. Interest on other taxes, eg late PAYE would not be allowable. Similarly, corporation tax repayment interest is taxable for companies, but repayment supplement/interest for PAYE would not be.

For individuals, interest paid on late tax is not allowable, nor is repayment supplement taxable.

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