Guide to Financial Redress for Maladministration
Annex J: Interest for delay - overview
| 1 | Check that arrears are £100 or more. | Paragraphs 90 & 92. |
| 2 | Check that period of delay exceeds relevant indicator. | Paragraphs 93-96. |
| 3 | Check that maladministration has occurred. | Paragraph 95. |
| 4 | If maladministration has occurred is the delay arising out of the maladministration significant. | Paragraph 105 & 106. |
| 5 | Apportion the arrears to the tax years in which they fell due. | Paragraphs 109-111.
Annex D and F. |
| 6 | If the delay in payment of benefit has been less than 10 years from either the date of claim or first contact, whichever is the later, calculate the compensation as simple interest. | Annex D. |
| 7 | If the delay in payment of benefit has been 10 years or more from either the date of claim or first contact, whichever is the later, calculate the compensation as compound interest. | Annex F. |
| 8 | If it is necessary to deduct any overpayments from the compensation payment ensure recovery is completed before the payment is issued. | Paragraphs 30-35. |
| 9 | Do not pay compensation if the result of the calculation is less than £10. | Paragraphs 90 & 92. |