HMRC late payment interest cut by 0.25%

    Luke Mudd
    18th September 2024
    Home » Categories » Tax » HMRC late payment interest cut by 0.25%

    HMRC has reduced late payment and repayment interest rates following the cut to the base rate.

    The Bank of England cut the base rate to 5.0% on 1 August, the first reduction for over four years.

    This has triggered a cut in HMRC interest rates which are pegged to the base rate.

    From 20 August, the late payment interest rate was cut to 7.5% from 7.75%, where it had been for 12 months. The repayment interest rate was also reduced to 4.0% from 4.25% from 20 August.

    HMRC late payment interest is set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%.

    Corporation tax self assessment interest rates relating to interest charged on underpaid quarterly instalment payments dropped to 6.0% from 6.25% from 12 August.

    The interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments is down by 0.25% to 4.75% from 5% from 12 August.

    Internet link: GOV.UK

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Tax and accounting bodies back e-invoicing adoption

    The UK’s professional tax and accounting bodies have backed the adoption of e-invoicing in their responses to a government consultation. The Chartered Institute of Taxation (CIOT) says that HMRC will…

    Government warned over ‘lost generation’

    The government should urgently tackle the jobs crisis among young people or it will risk facing a ‘lost generation’, according to the British Chambers of Commerce (BCC). In a report…