HMRC to reduce late payment interest
Late payment interest rates on underpaid taxes will soon decrease again due to the recent reduction in the Bank of England’s base rate. What are the new charges?
On 7 November 2024 an announcement confirmed a reduction in the Bank of England base rate to 4.75% from 5.0%. As HMRC’s late payment and repayment interest rates are linked to the base rate, it has confirmed that they will also come down.
From 18 November 2024 the following rates will apply:
- Late corporation tax paid quarterly – 5.75%
- Interest on overpaid corporation tax – 4.5%
From 26 November, the rates for other taxes will be:
- Late payment interest – 6.75%
- Interest on overpaid tax – 3.75%
Penalty interest can be avoided by paying your tax bill on time. As an added bonus to anyone expecting to receive interest on overpaid taxes, note that such interest is free from income tax.
Related Topics
-
How long does a capital loss last?
You’ve made a large capital gain from a recent sale. Capital losses can reduce the amount on which you have to pay tax but the losses you have date back decades and weren’t reported to HMRC. Is it too late to claim tax relief for them?
-
Salary transparency on recruitment
A pay transparency survey has revealed that 70% of employers intend to share salary ranges with external candidates during recruitment ahead of the EU Pay Transparency Directive coming into force. Will this become a legal requirement?
-
HMRC has recently expanded the scope of taxpayers who can arrange a payment plan online. What are the new parameters and conditions?
HMRC has recently expanded the scope of taxpayers who can arrange a payment plan online. What are the new parameters and conditions?