Background
As a result of the recent increase in the Bank of England Base Rate, the interest rate applicable to overdue tax is also going up.
However, unlike with previous increases H M Revenue & Customs (HMRC) are also increasing the interest rate on overpaid tax, having been held at 0.5% since September 2009.
Detail
The interest rate charged by HMRC on late payment of tax will increase from 3.75% per annum to 4.25% from tomorrow, Tuesday 23rd August. This is the sixth increase since the start of 2022.
The increased interest rate will apply to the following overdue taxes:
- Income Tax
- Capital Gains Tax
- Stamp Duty
- Stamp Duty Land Tax
- National Insurance Contributions
- Corporation Tax
- Inheritance Tax
- VAT
In addition, for the first time since September 2009 the interest rate on overpaid tax is also going up and will increase from 0.5% to 0.75%.
If you have any queries or would like more information regarding tax payments or related surcharges, please speak to your usual contact at the firm.
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