In accordance with EC Regulation 746/96, interest must be charged on penalties imposed for non-compliance with the terms and conditions of the rural environment protection scheme.
Interest is charged at a rate of 8 per cent per annum and, as payments under the scheme are made in advance, the interest is charged from the date of payment to the date of inspection. A 10 per cent penalty was imposed on the third year REPS payment of the person named which amounted to £444.75 and the sum involved attracted interest of £28.05 giving a total deduction of £472.80.