Another rise in penalty interest rates looms
Yet another increase in the various rates of interest HMRC charges on unpaid taxes will kick in from 15 August. What is affected and what will the new rates be?
The Bank of England announced that it was increasing the base rate of interest by 0.5% on 4 August 2022. Inevitably, HMRC then announced that its range of penalty interest rates would also increase again. From 15 August, the following rates charged, and payable, by HMRC will apply:
- Late corporation tax paid quarterly - 2.75%
- Overpayment interest on corporation tax - 1.5%
From 23 August, the following rates for other taxes, including income tax, will apply:
- Late payment interest - 4.25%
- Interest on overpaid tax - 0.75%
Related Topics
-
Uber loses VAT margin scheme appeal
The Court of Appeal has ruled that Uber cannot use the Tour Operators Margin Scheme (TOMS) when accounting for VAT on its ride-hailing services. The decision could have significant implications for businesses that act as intermediaries when supplying services to consumers. What was the dispute about?
-
Investment bond - undercover tax trap?
Inheritance tax is a hot topic but most couples only need to be concerned if they are worth more than £1m. What you don’t hear about is the income tax charge on investment bonds that’s payable on death. Can you reduce the tax bill before it’s too late?
-
When are staff discounts tax efficient?