HMRC Late Payment Interest Rates to be Revised After Bank of England Lowers Base Rate
Date: 2024-11-07 15:45
Source: GOV UK
Summary:
Her Majesty’s Revenue and Customs (HMRC) announced that late payment interest rates will be revised following the Bank of England’s decision to lower its base rate.
Details:
- The Bank of England reduced its base rate by 50 basis points to 3.5% on November 7, 2024.
- HMRC’s late payment interest rates are linked to the Bank of England’s base rate.
- As a result of the base rate reduction, HMRC’s late payment interest rates will be revised downward.
New Interest Rates:
- The new late payment interest rates will be effective from December 1, 2024.
- The new rates will be as follows:
- Large businesses: 6% per year
- Small and medium-sized businesses: 4% per year
- This represents a reduction of 0.5% per year for both large and small businesses.
Impact:
- The revised interest rates will apply to any late payments made on or after December 1, 2024.
- Businesses that make late payments will pay less interest compared to the previous rates.
- HMRC encourages businesses to pay their taxes on time to avoid any interest charges.
Additional Information:
- The revision in interest rates is part of HMRC’s ongoing commitment to support businesses during economic challenges.
- Businesses that are experiencing difficulties in paying their taxes on time should contact HMRC to discuss payment arrangements.
- HMRC offers a range of support measures to help businesses meet their tax obligations, including:
- Time to Pay arrangements
- Self-assessment payment plans
- Business Debtline
Conclusion:
The revision in HMRC’s late payment interest rates reflects the Bank of England’s response to current economic conditions. Businesses will benefit from lower interest charges on late payments, providing them with financial relief. HMRC continues to offer support to businesses facing tax payment difficulties, encouraging them to make timely payments to avoid interest charges.
HMRC late payment interest rates to be revised after Bank of England lowers base rate
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