EM4107 - SA Surcharge: Interest on Unpaid Surcharges

TMA70/S59C

S59C(6) provides that any unpaid surcharge carries interest from the end of the period of 30 days beginning with the day it is imposed.

This is not S86 interest - it is S59C(6) interest - but the rate of interest is the same.

As for S86, there is no provision for the mitigation of interest on a surcharge nor any right of appeal - though of course a successful appeal against the surcharge itself would see it discharged and the interest would disappear with it automatically.

From a practical point of view

• in a case being settled by formal statutory proceedings, the computer program would normally calculate and impose interest on late-paid surcharges automatically. The Enquiry Officer should however check the SA record and see the SA Manual (SAM) as appropriate
• in a contract settlement interest on late-paid surcharges will be very rare, arising only on a surcharge that has already been formally imposed (and not discharged when a tax-geared penalty displaced it)
• until a surcharge has been formally imposed, and another 30 days have passed, there can be no S59C(6) interest.

There is no surcharge on unpaid surcharge.