Hi
I recall a post with the methodology of calculating interest on late tax but my search skills are failing me.
Can someone please explain how interest is calculated? Is the 3% compounded daily, monthly, yearly?
if we take an example of £100 tax due, that is paid 16 months after its due date, how much interest will be incurred?
I get to these numbers, but not sure which is correct.
Daily compounding: £4.08
Monthly compounding: £4.08
Yearly compounding: £4.02
Thanks
I recall a post with the methodology of calculating interest on late tax but my search skills are failing me.
Can someone please explain how interest is calculated? Is the 3% compounded daily, monthly, yearly?
if we take an example of £100 tax due, that is paid 16 months after its due date, how much interest will be incurred?
I get to these numbers, but not sure which is correct.
Daily compounding: £4.08
Monthly compounding: £4.08
Yearly compounding: £4.02
Thanks
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