Interest on unpaid tax bills increases again
The Bank of England’s base rate has crept up again, causing late payment interest rates to increase from next week. What are the new charges, and is there an end in sight to these increases?
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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?
The Bank of England’s base rate increased on 11 May from 4.25% to 4.5% as the government attempts to curb inflation. As HMRC’s late payment and repayment interest rates are linked to the base rate, they will also increase. From 22 May 2023 the following rates apply:
- Late corporation tax paid quarterly – 5.5%
- Interest on overpaid corporation tax – 4.25%
From 31 May, the rates for other taxes will apply:
- Late payment interest – 7%
- Interest on overpaid tax – 3.5%
HMRC stated that the rates compare favourably with commercial practice for interest charged on loans or overdrafts and interest paid on deposits. This is the twelfth successive increase in rates since December 2021. However, there may be light at the end of the tunnel as the Office for National Statistics has confirmed inflation fell back into single figures at 8.7% in April, largely due to energy prices stabilising. Food inflation is still high though, and it’s possible the base rate will increase again before it starts to fall.
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