COM30060 - Background: company taxation overview: credit and debit interest

The Regulations introducing Quarterly Instalment Payments (QIPs) of tax by large companies (SI 1998 No 3175), took effect at the same time as the introduction of CTSA.

Those regulations impose a special interest charge, debit interest (Word 31KB) on companies that are liable to make QIPs.

The same regulations also entitle all companies to be paid interest, credit interest (Word 34KB) by HMRC, if they pay tax earlier than the normal due date.

For full details of the operation of credit and debit interest see the ‘Interest’ business area (COM80000 onwards).

For legislation applying to this subject, see COM30021.