This regulation deals with interest payments on overdue amounts.
This regulation should be applied if the contractor has not
paid over to HMRC the total amount due in respect of the tax year
by the reckonable date: SI2005/2045 reg 14(1).
Any amounts still outstanding from the contractor at the
reckonable date will be subject to interest at the prescribed rate:
SI2005/2045 reg 14(2).
Para (2) applies even if the reckonable date falls on a
non-business day: SI2005/2045 reg 14(3).
Para (2) does not apply where HMRC have issued a direction
under SI2005/2045 reg 9(5): SI2005/2045 reg 14(4).
If the prescribed rate of interest changes, the new rate
should be applied to any amounts still outstanding from the date of
the change: SI2005/2045 reg 14(5).
The 'prescribed rate' is defined at SI2005/2045 reg 14(6).
The 'reckonable date' is 17 days after the end of the tax
year, if payment is made electronically, or 14 days after the end
of the tax year in any other case: SI2005/2045 reg 14(7).
ENABLING PROVISION – FA04/S71 (1)
