Says Graham Purvis from Robson Laidler LLP “As of 29 September 2009, interest charged on late payments of tax will be the Bank of England base rate plus 2.5 (which would currently be three per cent), while interest paid on overpayments will be Bank of England base rate minus one, but with a new minimum rate of 0.5 per cent, so those owed money by HMRC will still receive some interest even with rates at their present historic lows.
“For corporation tax quarterly installment payments, the new rate for late payments remains at 1.5 per cent and for over payments is 0.5 per cent, effective from 21 September 2009”.
The rates will change in line with any future changes to the Bank of England base rate within 13 days of the Monetary Policy Committee meeting.
Previously, the rate charged on late payments varied from 0 per cent to 2.5 per cent, while the present low base rate meant most overpayments were attracting no interest. HMRC had announced its intention to harmonise rates for taxes where it charged or paid interest in July.
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Notes to editors
For more information contact Graham Purvis of Robson Laidler LLP: Direct Line 0191 2818191, Email gpurvis@robson-
These comments are offered for publication on the understanding that our contact information is included.
The writer would appreciate details of the publication date if this article is released for publication.
