(a) A company calculates its corporation tax liability for the year to 30 September 2023 as £250,000 and pays this amount on the due date. The correct liability for the year eventually turns out to be £274,000 and the company pays a further

£24,000 on 17 October 2024. Calculate the amount of interest payable by the company (assuming an interest rate of 6.75% per annum).

(b) A company calculates its corporation tax liability for the year to 30 November 2023 as £39,000 and pays this amount on the due date. The correct liability for the year eventually turns out to be only £33,300. The necessary repayment is made on 18 February 2025. Calculate the amount of interest payable to the company (assuming an interest rate of 3.25% per annum).

Neither company is a large company for the purposes of payment by instalments.