»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp three separate types of interest available within DST are:

• Credit Interest, also known as early payment interest
• Late Payment Interest, also known as underpayment interest
• Repayment Interest, also known as overpayment interest.

Each type of interest has as different rate applicable, as follows:

• Credit Interest »Ê¹ÚÌåÓýapp greater of 0.5%, and the Reference Rate - 0.25%
• Late Payment Interest Reference Rate + 2.5%
• Repayment Interest »Ê¹ÚÌåÓýapp greater of 0.5%, and the Reference Rate - 1%

»Ê¹ÚÌåÓýapp Reference Rate is typically the official bank rate as determined by the most recent meeting of the Monetary Policy Committee of the Bank of England. If the rate changes following a meeting, the legislation specifies when the rate change is to take effect after that meeting.

At the time of writing in January 2021, the three rates are as follows.

• Credit Interest 0.5%
• Late Payment Interest 2.6%
• Repayment Interest 0.5%

Mitigating Interest

»Ê¹ÚÌåÓýappre is no specific power to mitigate interest charged. Only the general “collection and managementâ€� responsibility of the Commissioners for HMRC under S5 CRCA 2005 is relevant.

Recovery of Interest

Any amount due by way of DST liability is recoverable as a debt due to the Crown.