Base rate increases again
The Bank of England raised the base rate of interest to its highest level since 2009. What is the full story and what does this mean for payments due to HMRC?
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New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
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Festive tax breaks for remote workers
You’re familiar with the tax break for Christmas parties but you now have a few remote workers, and the company will need to reimburse their travel and accommodation costs if they attend an event. Which costs count towards the tax-free limit and how can you manage any overspend?
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New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?
At 1 December 2021, the BoE base rate was 0.1%. It has already been increased three times since. The BoA has now announced that the rate is increased to 1%, which is a 13-year high. Of course, a number of other rates that affect individuals are pegged to the base rate – including HMRC’s penalty interest rate that applies to tax paid late. The late payment tax rate is set at the BoE base rate plus 2.5%. Unfortunately, this interest applies to all late payments, even where a time to pay arrangement has been agreed. Anyone on such a plan may wish to accelerate payments, as the instalments will be more expensive once HMRC increases the rate to 3.5%. This is also unlikely to be the last rate hike, with the next review due on 16 June.
The rate of repayment interest, i.e. where HMRC owe the taxpayer money, remains at 0.5%. This is set at the base rate minus 1%, with a lower limit of 0.5%. This will not increase until the base rate increases above 1.5%.
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