CCM10400 - Penalties and Interest: Interest on Penalties - General

A Section 31 or 32 penalty carries interest from the date on which it becomes due and payable. Where a formal penalty determination is issued this is 30 days from the date on which the claimant receives the notice of the penalty determination.

So if the notice is received on 1 May 2003 the penalty must be paid by 31 May 2003 otherwise interest will be automatically charged. A formal notice of a penalty determination can only be made with the approval of the Claimant Compliance Deputy Director, Business Development and if there is any interest to be paid this will be dealt with by the recovery office.

However, most penalties will be included in a letter of offer – see CCM10410 and CCM10420 for guidance regarding a penalty-only letter of offer and the additional guidance at CCM10430 if the offer includes overpaid credits.