RPSM04301060 - Scheme Administrator Pages: Taxation: Tax and penalties payable by the administrator: Is there Interest on overdue tax?

Is there interest on overdue tax?

[Regulation 5 of The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 [SI 2005/ 3454] 

Where a scheme administrator has not paid the tax to which the administrator is liable under Part 4 of Finance Act 2004 on time, the amount owing is subject to interest.

Tax that has become due and payable either

• in accordance with a return that the scheme administrator is required to make (see RPSM04301050) or,
• in accordance with a HMRC assessment in respect of tax that should have been made in a return by the scheme administrator (see RPSM04301040)

will carry interest at the applicable rate from the date by which the return covering the period in which the tax became due should have been made (see RPSM04300020).

Tax that has become due and payable

• in accordance with a HMRC assessment in respect of the scheme sanction charge (see RPSM04301040)

will carry interest at the applicable rate from the 31^st January following the end of the tax year in which the scheme sanction charge arose.

The applicable rate is the rate applicable under S178 Finance Act 1989 for the purposes of section 86 TMA 1970.