SALF309 - Payment of Tax: Automatic Interest and Surcharges: Miscellaneous Provisions
Cash limit for magistrates’ proceedings
Section 65(1)
| 3.101 | Under Self Assessment, tax and other amounts due, can be recovered by way of proceedings in a magistrates' court providing the total amount due does not exceed £2,000. |
Interest is charged on any sum due, including penalties and surcharge
Section 69
| 3.102 | Once an amount has been added to the taxpayer's statement of account, whether as tax, a surcharge or a penalty, it is treated as tax due and payable for collection and recovery purposes. |
Payments by cheque
Section 70A
| 3.103 | Any payment made by cheque is treated as having been made on the day the cheque is received (providing the cheque subsequently clears). |
Rate of interest
FA89/S178
| 3.104 | The rate of interest is
calculated using a formula set by regulations. Rates change
automatically when there is a change in the bank base rates.
The rate charged on late tax is in line with the average rate for borrowing. The rate paid on overpaid tax is in line with the average return on profits. |
