Interest....frozen at 30th Sept 2018 ?

[Ltdoptions]

I've heard late payment interest stops accruing as of Sept '18 for pre-Sept settlement registrations....is that right?

Even if so, I assume that will only apply if you end up settling?

[Tiger22]

Probably correct. I have just had my settlement document through and the interest calculations are up to 30/09/2018 provided I pay by the end of this tax year.

I've heard late payment interest stops accruing as of Sept '18 for pre-Sept settlement registrations....is that right?

Even if so, I assume that will only apply if you end up settling?

[Iliketax]

I've heard late payment interest stops accruing as of Sept '18 for pre-Sept settlement registrations....is that right?

Even if so, I assume that will only apply if you end up settling?

I heard that rumour a couple of months ago but have never seen anything written down about it. I don't get involved in settlements though.

[DavidD]

Yes, on my wife’s settlement offer the past interest stops at 30.09.2018.

[Ltdoptions]

DSW mentioned this to me, so it sounds promising, although you're right, not sure its official policy yet. If not, hopefully this is one of the pressures that the APPG review can bring to bear.

Of course, in a fair & just world (ha), interest would be frozen as soon as you registered for settlement. If you don't end up settling then fair enough * you still pay the interest, but if you do settle then you can't fall victim to HMRC's incompetence / greed. I've racked up an extra year of interest due to their complete lack of meaningful response (despite chasers sent).


* that's in the context of settlement. Charging up to 20 years of retro interest in the first place is obviously daylight robbery.

[Ltdoptions]

Probably correct. I have just had my settlement document through and the interest calculations are up to 30/09/2018 provided I pay by the end of this tax year.

Ok good, would appear to be the case then. Presumably though, as per their comments at the TSC, the freeze will also apply post-April now if the delay is their fault.

[Delendog]

Ok good, would appear to be the case then. Presumably though, as per their comments at the TSC, the freeze will also apply post-April now if the delay is their fault.

I receive settlement figures dated 28/1/19 and yes interest was applied to 30/9/18.

[Ltdoptions]

Using their own logic, is there not an argument to say it should be frozen as of the first settlement deadline of 31/05/18 ?

[webberg]

I can't say that we have seen interest calculations frozen at 30/9/18.

That said, we have seen that the rather crude excel spreadsheet they use tends to suggest a stop to interest at that date (or at least the formulae does not permit a date after that to be used). When we see the final contract and the TTP calculations again this date is prominent but not always used.

In strict law, interest is for the period from date tax is due to date paid.