HMRC concession reduces unfair interest charges

While clients rarely enjoy paying their tax liabilities, interest charges can be even less welcome, particularly when a repayment for a later year is offset against an earlier year’s liability.

This situation is likely now, as some businesses struggled through lockdowns in 2020, and so have claimed a trading loss on their 2020/21 tax return. Rather than pay tax still outstanding for 2019/20, the trader may prefer to offset an overpayment arising from the 2020/21 loss claim.