INS5108b - Companies struck off
debit interest
Debit interest arises under the quarterly instalment payment
provisions. It can only arise on 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
- to the normal due date
It runs for every day during the instalment period on which the
amount of tax paid by the company is less than the amount it was
required to pay under the quarterly instalment payment rules.
Notes
- Debit interest is deductible in computing profits for CT
purposes
- Payments of tax made after the normal due date will not attract
debit interest. They will usually attract late payment interest
- Debit interest is not calculated or posted on the
company’s COTAX record until
- a self assessment has been recorded or a Revenue
Determination has been made
and
- the normal due date has been reached.
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