HB Accountants

August

Interesting?

Regulations took effect recently which will see a change in the way HMRC interest rates are calculated.

The new interest regime will take some time to be fully implemented, but the first change will come into effect in September.

One of the new rules changes the way that interest rates on tax are calculated - bringing them closer to the published Bank of England rates. The Regulations also provide for a minimum rate on repayments of 0.5% irrespective of the bank rate.

Rates are now to be calculated at Bank of England rate + 2.5% for underpayments, and Bank of England rate - 1% for repayments.

Those taxpayers with time to pay arrangements should be aware that there may be some adjustment to the interest rate on late payment in September, depending on the outcome of the MPC meeting. Penalties are not charged when a time to pay arrangement is in place.

Contact John Neighbour on 01992 444466 (or johnn@hbaccountants.co.uk) for a free initial consultation.
 

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