Interest

HM Revenue & Customs (HMRC) charge late payment interest on any tax, including unpaid surcharge and unpaid penalty, that is not paid by its due date. Interest arising on a liability that has not been paid in full is described as 'accruing late payment interest for' followed by a brief description of the liability on which it is arising. Interest is calculated on a daily basis and the amount shown will increase each day until the liability is fully paid. Once the liability has been paid in full, the final interest is calculated and described as 'late payment interest for', followed by a brief description of the liability on which it has been raised. Please note: HMRC do not charge interest for late payment of late payment interest.