A company calculates its corporation tax liability for the year to 31 August 2016 as £120,000 and pays this amount on 1 June 2017 . The company's corporation tax return is submitted during August 2017 and the tax liability for the year is finalised at £124,650.

The balance of £4,650 is paid on 3 October 2017 . The company is not a large company for the purposes of payment by instalments. Calculate the interest payable, assuming an interest rate of 2.75% per annum.