Interest Rates for Late and Overpaid Taxes – Decrease effective 24 March 2009

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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%.

Further information:
HM Revenue and Customs interest rates

This entry was posted on Monday, March 23rd, 2009 at 05:00 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.