Penalty interest rate set to rise again
The Bank of England raised its base rate again in June, and HMRC has confirmed the penalty rate of interest on late-paid tax will follow suit. What will the new rate be and when will it start to apply?
The base rate has been increased several times already in 2022 as the Bank of England attempts to exert some control on spiralling inflation. The latest increase (on 16 June) set the rate at 1.25%. This means that HMRC’s penalty interest rate will rise to 3.75% (up from 3.5%). HMRC has confirmed that this will take effect from 27 June for quarterly instalment payments, and from 5 July for everything else.
Related Topics
-
Are you ready for the PAYE end of year?
The 2024/25 tax year ends in just a few weeks. As an employer this means extra payroll duties. Apart from submitting the usual reports, what else ought you be considering?
-
Man Utd is cutting staff perks. Should, and can, you?
Manchester United FC is to end free hot meals for its staff as part of a cost-cutting exercise. If you want to withdraw staff perks such as free food, tea and coffee to save on business costs, can you do so?
-
HMRC’s official rate of interest set to increase
HMRC’s official rate of interest will increase from 6 April 2025. What does it apply to, what is the new rate and what else is changing?