# The Income Tax (Pay As You Earn) Regulations 2003, Regulation 116: Interest on overpaid tax

Extent: E+W+S+N.I.

(1) This regulation applies if tax in respect of a tax year to which a PSA relates is repaid to the employer after the due date (as defined by regulation 109(2)).
(2) The tax repaid carries interest at the prescribed rate from the later of—
(a) the due date for a tax year, and
(b) the date on which the tax was paid,
until the order for the repayment is issued (“the interest period”).
(3) Any change made to the prescribed rate during the interest period applies to the tax repaid from the date of the change.
(4) “The prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of ICTA.

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Source: https://www.legislation.gov.uk/uksi/2003/2682/regulation/116 (the official version)
Page: https://openlegislation.uk/income-tax-pay-as-you-earn-regulations-2003/regulation-116
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.