EM4040 - Interest: Mitigation

TMA 70/S86
TMA 70/S87
TMA 70/S87A

There is no specific power to mitigate interest. Only the general “collection and management” responsibility of the Commissioners for HMRC under S5 CRCA 2005 is relevant.

Where there is an objection to an interest charge HMRC caseworkers should refer this to the DMB Interest Review Unit following the guidance in

  • SAM for an SA interest charge, see SAM60020+
  • COM for a company case, see COM82020+.

In a contract settlement, if there has been unreasonable delay by HMRC which falls within the terms of the webpage “complaints and putting things right”, a taxpayer may seek redress via the complaints process.

Where a taxpayer presses a complaint that excessive HMRC delay has caused or contributed to the interest charge, HMRC caseworkers should seek advice from the Specialist Technical team, see EM21000.

A reduction in the interest charge can be considered in a contract where the circumstances are in accordance with the guidance at DMBM405010.