Interest Rates for Late and Overpaid Taxes – Increase effective 6 January 2009Monday, December 29th, 2008
Interest is charged by HMRC when income tax and NICs are paid late, and credited when they are overpaid. New interest rates have been announced and take effect from 6 January 2009.
Following the further reduction in the Bank of England base rate on 4 December, from 3% to 2%, the rate of interest charged on income tax and NICs paid late decreases from 5½% to 4½%. The rate paid on overpaid tax and NICs reduces from 1½% to 0¾%.
HMRC has also introduced legislation that
- allows changes to interest rates to be made 13 days after the meeting of the Bank of England Monetary Policy Committee, and
- prevents HMRC interest rates falling below zero.
HM Revenue & Customs interest rates
The Taxes and Duties (Interest Rate) (Amendment) Regulations 2008
Explanatory Memorandum to the Taxes and Duties (Interest Rate) (Amendment) Regulations 2008
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