Further rise in HMRC interest rates confirmed
Following the 13th consecutive increase in the Bank of England (BoE) base rate, HMRC’s interest rates on overpaid or underpaid tax will also increase. What are they and when will they take effect?
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Deadline to pay Class 1B NI
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Company owners' personal tax affairs under scrutiny
Company owners are being urged to check their personal tax affairs as a new compliance campaign focuses on transactions between limited companies and the people who control them. Loans, personal expenses and the use of company assets are among the areas attracting attention. Could you have overlooked a tax liability?
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HMRC speeds up National Insurance refunds
HMRC has confirmed that it is using a new automated process to speed up National Insurance refunds. Where its records suggest that someone may have overpaid, HMRC will write to them asking them to check their employment and contribution details before any refund is processed. Could you be due money back?
From 3 July 2023 the following rates will apply:
- Late corporation tax paid quarterly - 6%
- Interest on overpaid corporation tax - 4%
From 11 July, the rates for other taxes will apply:
- Late payment interest - 7.5%
- Interest on overpaid tax - 4%
In a press release HMRC states that the rate of late payment interest encourages prompt payment and ensures fairness for those who pay their tax on time, while the rate of repayment interest fairly compensates taxpayers for loss of use of their money when they overpay. Anyone struggling to pay a tax debt should contact HMRC to try and agree a payment plan. This won’t prevent interest being charged, but will protect against penalties if the agreed terms are adhered to.
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