In addition to the tax to pay at each Entry (
IHTM31011) you have to include any
interest (
IHTM30341) charge in your assessment.
The interest charge arises on the unpaid tax from the due
date (IHTM30150) to the date you raise the assessment, or the date
any earlier deposit was received. Deposits (
IHTM31751) are discussed in more detail
later in this section of the manual.
There are different methods for calculating interest due on
instalments, depending on whether the instalment is due with or
without interest relief (
IHTM30363).
Interest is calculated automatically by COMPASS (
IHTM31101) when you raise an assessment
by that method. There are a few occasions however when you have to
check (
IHTM31550) the amounts calculated.
Where you raise a manual assessment (
IHTM31301), you will have to calculate
the interest charge separately. You can do this by using the
“interest calculator” (
IHTM31511) computer program.
