Interest on amount due to HMRC Notice of Assessment under Section 29 of 1970 Act

[Nava39]

Hi, Anyone know if HMRC can apply interest on any amount determined to be due years later after issuing of HMRC Notice of Assessment under Section 29 of 1970 Act? Or under the 'Assessment' notice they can only demand the tax was due on the year?

[sadkingbilly]

yes

[woody1]

Late payment interest accrues from when the amount was due.

For example, if HMRC had issued an assessment for 2010/11, and you settled now, there would be 14 years of interest on top.

[Snooky]

Hi, Anyone know if HMRC can apply interest on any amount determined to be due years later after issuing of HMRC Notice of Assessment under Section 29 of 1970 Act? Or under the 'Assessment' notice they can only demand the tax was due on the year?

The assessment is saying that the tax amount due on a particular date was £xxxx and you underpaid by £yyy. Because they believe should have had that money on that date but still don't have it, you're also liable to interest on the outstanding amount for the entire period since then (not compounded, thankfully).