Tax treatment of interest on late payment fees
Hello, Can anyone guide on the tax treatment of interest on late payment fees. Not sure whether it will be standard rated or exempt?
16/08/2020 17:42:55
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SAJITH N16/08/2020 18:18:34
Depending on the contractual arrangement it can be regarded as Exempt (where interest is charged on goods sold under credit sale agreements) or Out of scope (if interest is charged due to late payment of consideration - refer public clarification for compensation type payments).
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