|
archived news blog
May 2012 (26)
April 2012 (39)
March 2012 (49)
February 2012 (42)
January 2012 (44)
December 2011 (33)
November 2011 (47)
October 2011 (42)
Minimum interest rate for tax overpayments. Pearson May News Update - Thursday 30 July
Minimum interest rate for tax overpayments
HM Revenue and Customs (HMRC) has announced that people who overpay their taxes will be guaranteed a minimum of 0.5 per cent interest on the money.
This will be the case even if the official base rate falls below 1.5 per cent, HMRC said.
The move is part of plans by the government to simplify the way that HMRC sets interest rates on both late payments and overpayments of tax.
HMRC said that the new system for calculating the interest that is both charged and paid will be more transparent and will introduce greater elements of certainty.
The first of the new rates will be worked out in September following that month’s meeting of the Bank of England’s Monetary Policy Committee.
Some adjustment to the current rates will still be necessary, HMRC said, were the base rate to remain on hold.
The simplified rates will be linked to the Bank of England base rate and will change in response to any changes announced by the Monetary Policy Committee 13 working days later.
Interest charged on late payments of tax will be the Bank of England base rate plus 2.5 and for interest paid on overpayments, the rate will be the Bank of England base rate minus 1.
Criticism was levelled at HMRC earlier in the year when the interest rate on overpaid tax dropped to zero.
Business General
This section contains a host of advice and information on a range of business matters, from insuring your
business to dealing with employee absence. Simply visit the topics listed below for further information,
ideas, tips and strategies on how to take your business forward.
Click here for more information
See What's On Our Site
Our site also contains:
- A huge database of business information
- Your portal to the web with our powerful search facilities and Links section
Home | Contact Us | Recruitment | Services | News | Knowledge Centre | International
About Us | Companies House Search | Links | Search | Register | Logout
Terms
and Conditions
Technical Problems - email service@pearsonmay.co.uk
Copyright © 2009 Pearson May. All rights reserved.