Rushtons Chartered Accountants and Business Advisers’ Post

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

🚨 HMRC Interest Rates to Be Reduced 🚨 With the Bank of England lowering the base rate to 5%, HM Revenue & Customs (HMRC) will also be reducing their interest rates. 🔄 What does this mean? - HMRC charges interest on late tax payments at base rate + 2.5%. - They pay interest on repayments at base rate - 1%, with a minimum of 0.5%. The new reduced rates will come into effect on: 📅 12 August 2024 for quarterly instalment payments 📅 20 August 2024 for non-quarterly instalment payments If you’re concerned about making your tax payments or just want to ensure you’re staying on top of your finances, we’re here to help! Reach out to us, and we can assist in setting up a payment arrangement with HMRC. 💬 Let’s take the stress out of tax. Contact us today to get started. #TaxHelp #HMRC #InterestRates #TaxPlanning #FinanceTips #SmallBusinessSupport #UKFinance 4o

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

HMRC cuts late payment interest rate to 7.25% This adjustment signifies that the rate at which HMRC charges interest, which is the Bank of England's base rate increased by 2.5%, will be lowered from 7.5% to 7.25% starting November 18th for individuals with new tax liabilities and those who are making payments every three months. The updated interest rates will be in place for individuals with new tax liabilities and those who are making payments every three months starting November 18th, and will be implemented for those on a payment plan that does not follow a quarterly schedule from November 26th. Although a decrease in interest payments might seem advantageous, it's important to note that tax insurance expert Qdos advises that the primary focus should be on ensuring the 31st January self-assessment deadline is met to prevent penalties for late payments. The new interest rates will be applied starting November 26th for individuals with payment plans that do not follow a quarterly schedule. These adjustments will be implemented as follows: November 18, 2024, for payments made every three months November 26, 2024, for payments made in non-quarterly payments #Payments #HMRC #LatePayment #InterestRate #BankofEngland #SelfAssessment #TaxReturn

HMRC cuts late payment interest rate to 7.25% This adjustment signifies that the rate at which HMRC charges interest, which is the Bank of England's base rate increased by 2.5%, will be lowered from 7.5% to 7.25% starting November 18th for individuals with new tax liabilities and those who are making payments every three months. The updated interest rates will be in place for individuals with new tax liabilities and those who are making payments every three months starting November 18th, and will be implemented for those on a payment plan that does not follow a quarterly schedule from November 26th. Although a decrease in interest payments might seem advantageous, it's important to note that tax insurance expert Qdos advises that the primary focus should be on ensuring the 31st January self-assessment deadline is met to prevent penalties for late payments. The new interest rates will be applied starting November 26th for individuals with payment plans that do not follow a quarterly schedule. These adjustments will be implemented as follows: November 18, 2024, for payments made every three months November 26, 2024, for payments made in non-quarterly payments #Payments #HMRC #LatePayment #InterestRate #BankofEngland #SelfAssessment #TaxReturn

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.

HMRC has updated its late-payment and repayment interest rates, following the Bank of England’s 1 August 2024 decision to cut the bank base rate to 5% (from 5.25%). For most taxes and payments, the late-payment interest rate will be 7.5% and the repayment rate 4%, with effect from 20 August 2024. Interest charged on underpaid quarterly instalment payments of corporation tax will be 6%, and interest paid on overpaid quarterly instalments will be 4.75%, with effect from 12 August 2024.

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

HMRC Updates Interest Rates for Late and Early Payments Following BOE Rate Cut; SAYE Schemes Also Affected: Following the Bank of England's 5% rate cut, HMRC will update interest rates. From 20 August 2024, the late payment rate will be 7.5%, and the early repayment rate 4%. Starting 16 August 2024, the bonus rate for five-year SAYE schemes will be 3%, with an early leaver rate of 1.33%. #uktax #taxsavings #taxation #taxadvices #taxpayers #smallbusinessowners #ukaccountant