Interest charged by HM customs & Excise

anneke81

I would like to know where I stand in regards to interest being charged by HM Customs & Excise

THe amount they asked for is in dispute and they agreed to put a hold on the money for a week before sending out a demand notice.

When I phoned them today to get an update I was told they charged us interest on the money "owed" to them.

Now, I phoned up before the scheduled week was up - can they still charge me this interest or do I have a legal case for not having to pay the interest? :mad:

Mikeyorks

Assuming this is Customs and not IR? They charge default interest on tax which is overdue from the original due date - currently at 7.5%. If they've resolved the dispute but there is still VAT or whatever outstanding and overdue - you will be charged as would anyone paying late. The fact that it may have taken a while to resolve the dispute doesn't mitigate the interest. You should have paid the amount likely to become due in advance of the due date ... to achieve that?

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_RatesCodesTools&propertyType=document&columns=1&id=HMCE_CL_001673