UK Should Change ‘Unfair’ Interest Charges, Tax Group Says

The UK needs to change late payment rules under which taxpayers could be charged interest even when no tax is due, an organization said.

The government should reinstate a rule allowing His Majesty’s Revenue and Customs to waive interest on underpaid value-added tax when no actual tax losses to authorities occurs, as the current late payment rules are “unfair,” the Chartered Institute of Taxation said in a letter Tuesday.

• The power to waive interest charges in cases where no loss to the exchequer occurred was dropped from the new VAT regime from 2023.
• CIOT said the late repayment issue ...