Interest Rates for Late and Overpaid Taxes – Decrease effective 24 March 2009Monday, March 23rd, 2009
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 24 March 2009. This is the second change of rates to occur since Regulations were made in December allowing HMRC to amend rates more quickly following movements in market rates. The amended legislation provides for these rates to come into effect 13 working days after the meeting of the Monetary Policy Committee of the Bank of England.
The reduction in the Bank of England base rate on 5 February, from 1½% to 1% did not, under the current statutory rules, trigger an adjustment in HMRC’s interest rates. However, the further reduction announced on 5 March, from 1% to ½%, has the effect of reducing the rate charged on tax paid late from 3½% to 2½%. The rate paid on overpaid tax remains unchanged at 0%.
HM Revenue and Customs interest rates
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