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On November 7th 2024, the Bank of England’s Monetary Policy Committee lowered its base interest rate from 5.0% to 4.75%. Since HMRC’s interest rates are linked to this base rate, interest rates for late tax payments and repayments will also decrease. These lower HMRC interest rates will take effect on different dates based on payment type: ❗ For quarterly instalment payments, the change starts on November 18, 2024. ❗ For non-quarterly payments, it starts on November 26, 2024. This adjustment aligns HMRC’s rates with the Bank of England’s updated base rate, making late payments and repayments slightly less costly for taxpayers. https://lnkd.in/e9QAQ9G7

🚨 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

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

HMRC Adjusts Interest Rates Following Bank of England Cut Following the Bank of England's recent decision to lower the base rate to 5%, HM Revenue & Customs (HMRC) has announced corresponding reductions in their interest rates. These changes affect both the interest charged on late tax payments and the interest paid on tax repayments. HMRC’s interest rates are directly linked to the Bank of England’s base rate. The rate for late payments will now be the base rate plus 2.5%, and the repayment interest rate will be the base rate minus 1%, with a minimum threshold of 0.5%. The new rates came into effect on: - 12 August 2024 for quarterly instalment payments - 20 August 2024 for non-quarterly instalment payments If you are facing difficulties in making timely tax payments or have concerns regarding your tax obligations, please contact us. Our team at Beavis Morgan, together with our partner business Moorfields Advisory, is equipped to assist you in arranging suitable payment plans with HMRC to ensure compliance and financial stability. Please contact your usual Beavis Morgan partner or email info@beavismorgan.com. Further details on the revised interest rates can be found here: https://lnkd.in/eQDCus2w #HMRC #TaxAdvice #InterestRates #BankOfEngland #FinancialPlanning #TaxCompliance #UKBusiness #TaxPayments #FinancialSupport #BeavisMorgan

🥱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’s late payment interest rates are set to drop for the first time since 2020, following the Bank of England's base rate cut. Effective August 2024, find out the updated rates and what this means for your tax payments. Read the full details in our latest article. https://buff.ly/3SWepP3 #TaxUpdate #HMRC #InterestRates

📢 HMRC interest rates to be reduced The Bank of England’s decision to reduce the base rate to 5% means that HM Revenue & Customs (HMRC) will also reduce their interest rates. The interest rates charged by HM Revenue and Customs on late tax payments, as well as the rates they pay on repayments are linked to the Bank of England’s base rate. Late payment interest is charged at base rate plus 2.5%. Repayment interest is paid at base rate minus 1%, subject to a minimum of 0.5%. The reduced rates will apply from: ·        12 August 2024 for quarterly instalment payments; and ·        20 August 2024 for non-quarterly instalments payments. If you need help with your tax or are concerned about being able to pay a tax payment, please get in touch. We can work with you to make a payment arrangement with HMRC. #Tax #HMRC #InterestRates #BankOfEngland #TaxAdvice #Accounting #Finance #UKBusiness

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/3AMUhJi #HMRC #TaxCompliance

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/4fwOsPs #HMRC #TaxCompliance

The Bank of England’s decision to reduce the base rate to 5% means that HM Revenue & Customs will also reduce their interest rates. The interest rates charged by HMRC on late tax payments, as well as the rates they pay on repayments are linked to the Bank of England’s base rate.