RSTP4003 - Interest on late payment of penalties

RSTPA guidance on the circumstances in which Revenue Scotland can charge interest for late payment of penalties.

RSTP4003 - Interest on late payment of penalties

We will charge you interest on the amount of any unpaid penalty (but not a penalty for failing to make a required repayment to us – see RSTP3003) from the date on which the penalty is due to be paid until you pay it. See RSTP3001 for further guidance on penalties.

‘Unpaid penalty’ means a penalty which you have not paid to us in full by the due date.

The percentage per annum interest rate we charge for late payment of a penalty is the percentage per annum figure of the Bank of England rate (currently 0.5%) + 2.5%. We therefore currently charge 3.00% interest per annum on any unpaid penalty.

The interest charged is simple interest, not compound interest. This means that late payment interest is only calculated on the amount of the unpaid penalty and not also on late payment interest that has already been charged or accrued.

RSTPA 2014 sections 218 and 220

The Revenue Scotland and Tax Powers Act (Interest on Unpaid Tax and Interest Rates in General) Regulations 2015 regulations 5-6

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