HMRC Late Payment Interest Rates to Be Revised After Bank of England Lowers Base Rate
UK News and Communications – November 7, 2024
London, UK – The UK’s HM Revenue and Customs (HMRC) has announced that it will be revising its late payment interest rates following the Bank of England’s decision to lower its base rate. The new rates will take effect on December 1, 2024.
The Bank of England has lowered its base rate by 0.25% to 1.75% on November 6th. This decision was made in an effort to stimulate economic growth and bring down inflation, which has risen to its highest level in decades.
In line with the Bank of England’s decision, HMRC has announced that it will be reducing its late payment interest rates. The new rates will be as follows:
| Interest Rate | When Interest is Charged | |—|—| | 2.25% | Late payment of VAT, PAYE, corporation tax, and other taxes | | 2.75% | Late filing of VAT, PAYE, corporation tax returns, and other tax returns |
The previous interest rates were 2.5% for late payments and 3% for late filings.
The revised interest rates will provide businesses with some relief from the high cost of late payments. However, businesses should still be aware of the importance of paying their taxes on time to avoid incurring any interest charges.
In addition to the late payment interest rates, HMRC has also announced that it will be reviewing other interest rates, including the overpayment interest rate and the repayment interest rate. The overpayment interest rate is currently 1.75%, while the repayment interest rate is currently 2.25%.
HMRC will make an announcement on any changes to these interest rates in due course.
Businesses that are struggling to keep up with their tax payments should contact HMRC as soon as possible to discuss payment arrangements. HMRC may be able to offer a payment plan or other assistance to help businesses get back on track.
HMRC late payment interest rates to be revised after Bank of England lowers base rate
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