Tax Credits Act 2002 section 37

Interest

Section 37 deals with HMRC's power to charge interest on tax credit overpayments caused by fraud or neglect, and on penalties imposed under the Act.

• HMRC may charge interest on overpayments attributable to fraud or neglect by the claimant(s) or their agent
• Interest runs at a prescribed rate from 30 days after the appropriate date, which depends on the type of overpayment
• Penalties imposed under sections 31 to 33 also carry interest from the date they become due, though HMRC may reduce or waive the interest on penalties at their discretion
• Any interest accrued is treated as part of the overpayment or penalty for recovery purposes