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Interest on late payments on account

Interest on late payments on account

Is it OK for HMRC to charge interest on late  Payments on Account?

Background:  Client very late submitting 2010-2011 tax return -- it was submitted in December 2012, a few days before submitting the 2011-2012 return.  Therefore, it could be argued that the estimate used for working out the payments on account is irrelevant.  Of course, one could argue this or that, but it is what the Tax Management Acts prescribe that is important.  Hence the question.

Other information:  Client has paid £1,300 in fines.


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29th Dec 2012 16:40

No reasonable excuse?

Interest is charged on instalments paid late, inter alia, but this not your main worry.

What is the reason for ignoring a notice to submit return, fixed penalty and daily penalty notices?  Not particularly rational. 

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By ACDWebb
29th Dec 2012 23:01

If payments on account are due

interest runs from the normal due dates.

With rates what they are it is presumably penalties & surcharges that are the bigger hit

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31st Dec 2012 14:37

Many thanks for your comments

Yes, my client got very confused and things got on top of him...and is now sorting things out.  He has paid the 2010-2011 tax and all the penalties.  He will soon settle the 2011-2012 tax and the first payment on account for 2012-2013 and the interest.

Thank you both again for your comments.

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