ICM Accountancy’s Post

🚨 HMRC Interest Rate Update 🚨 HMRC has adjusted interest rates following the Bank of England’s base rate cut. Late-payment interest is now 7.5% and repayment interest 4%. For corporation tax, underpaid instalments will attract 6% interest, and overpaid instalments 4.75%, effective from now. Additionally, Save As You Earn (SAYE) scheme bonus rates are also changing to 3% for five-year contracts and 1.1% for three-year contracts. Early leaver rates drop to 1.33%. #HMRC #InterestRates #TaxUpdate #FinanceNews #SmithNewmans

Following the reduction in the Bank of England base rate by 0.25%, HMRC's interest rates for late-payments and the repayment of tax will also be reduced. HMRC interest rates are set in legislation and linked to the Bank of England base rate which reduced from 5.25% to 5.00% on 31 July 2024. The changes apply as follows: From 12 August 2024 for companies in the Corporation Tax quarterly instalment payment regime + Interest charged on underpaid quarterly instalment payments: 6.00% (was 6.25%). + Interest paid on overpaid quarterly instalment payments and on early payments of Corporation Tax not due by instalments: 4.75% (was 5.00%). From 20 August 2024 for Non-quarterly instalment payments + Late payment interest: 7.50% (was 7.75%). + Repayment interest: 4.00% (was 4.25%). #HMRC #UKtax #UKtaxagent #HemisphereAccounting

HMRC interest rates are set in legislation and are linked to the Bank of England base rate. There are 2 rates: 🌟Late payment interest, set at base rate plus 2.5% repayment interest, set at base rate minus 1%, with a lower limit of 0.5% (known as the ‘minimum floor’) 🌟The late payment interest rate encourages prompt payment. It ensures fairness for those who pay their tax on time. The repayment interest rate compensates taxpayers fairly, when they overpay, for loss of use of their money. ☎️ 01733 247500

🚨 Important Update: HMRC is revising its late payment interest rates in light of the Bank of England’s base rate cut. Stay informed and ensure your payments align with the latest rates. 📉💼 For more info visit: https://bit.ly/3WttR6i #HMRC #BankOfEngland #TaxUpdate #UKTax

The recent reduction of the Bank of England’s base rate to 5% will directly impact HMRC’s interest rates for tax payments. Previously, the base rate was 5.25%, and this adjustment will lower both the interest charged on late payments and the rates paid on repayments. Key changes: - Late Payment Interest: Decreasing from 7.75% (base rate + 2.5%) to 7.5% - Repayment Interest: Decreasing from 4.25% (base rate - 1%) to 4%, with a minimum of 0.5% These reduced rates will take effect from 12 August 2024 for quarterly instalments and 20 August 2024 for non-quarterly payments. Read more here: https://lnkd.in/dD_yAQSs #TaxUpdate #BankofEngland #HMRC #InterestRates #TaxPlanning #TaxDash

Curious about how HMRC interest rates are set? 📈 They’re tied directly to the Bank of England’s base rate. Here’s what you need to know: Late payment interest: Base rate + 2.5% ⚖️ (encourages timely tax payments) Repayment interest: Base rate - 1%, with a minimum floor of 0.5% 💰 (fair compensation for overpayments) Find out more here - https://buff.ly/2PdVgF9 🔗 #Tax #HMRC #InterestRates #BusinessFinance

🥱Boring but important... Following the Bank of England’s reduction of the base rate of interest to 5% on 1 August, HMRC has finally announced they will follow suit, reducing the late payment interest rate by 0.25% from 20 August 2024. ✔️This means that the late interest payment rate will be cut to 7.5% from the record 7.75% level it has been for 12 months. ❌Naturally the repayment rate will also reduce, from 4.25% to 4% on any early or overpayments you may have made to HMRC. The other rates which are affected are as follows: ➡️Interest charged on underpayments of quarterly instalments of corporation tax: drops from 6.25% to 6% ➡️Interest paid on overpayments or early repayments of the same to fall from 5% to 4.75%

HMRC has published its "interest rates for late and early payments", following the decrease in the interest rate by the bank of england. The rate from 26 November 2024 sits at 7.25% for late payments, with repayments garnering interest at 3.75%. It is worth noting that late payment interest will rise from 6 April 2025, from the current 2.5% surcharge increasing to a 4% surcharge. Assuming interest rates hold, this would lead to 8.75% late payment interest being levied.

With a cut to the base interest rate, HMRC’s late payment rates are also set to be adjusted. Here’s what you need to know, and how to stay compliant. 💬Read more: https://bit.ly/48YDoIw #HMRC #TaxCompliance

HMRC will lower late payment and repayment interest rates for the first time in a year. The Bank of England (BoE) cut the base rate to 5.0% on 1 August, the first reduction in over four years. Read more ⬇️ https://lnkd.in/dmdt_mXq #HMRC #interestrates #repayments #laterepayments #finances