INS5108a - Companies struck off

credit interest

Credit interest arises under the quarterly instalment payment provisions. It can arise to any company, not just a quarterly instalment payer.

It can run at any time during the ‘instalment period’ which is

• From the due date for the first quarterly instalment payment (or what would be that due date if the company were liable to make such payments)
• To the normal due date

For a Quarterly payer it runs for every day on which the amount of tax paid by the company exceeds the amount it was required to pay under the quarterly instalment payment rules.

For all other companies credit interest is payable on any tax paid before the normal due date.

Notes

1. Credit interest (like all other interest companies are entitled to under the CTSA provisions) is taxable and must be included in company tax returns
   
   
2. Overpayments of tax after the normal due date will usually attract repayment interest. If the payment which led to the overpayment was made before the normal due date it will have attracted credit interest
   
   
3. Credit interest runs at a slightly higher rate than repayment interest
   
   
4. Credit Interest is not calculated or posted on the company’s COTAX record until

Close Window