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
-
Flat rate scheme: join now or never?
HMRC recently published a report about the advantages and disadvantages of the flat rate scheme for a small business. Could the report lead to the abolition of the scheme or a ban on new users?
-
Accelerate tax relief for the cost of equipment
You’re upgrading your company’s IT equipment as it’s now several years old. Naturally your company will get tax relief for the purchases but what’s the tax position if you sell or scrap the old equipment, and how might you improve it?
-
Opt out of winter fuel payments by 15 September
HMRC has issued new guidance on the winter fuel payments. What do you need to know?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.