Yet another interest rate increase on the way
Late payment interest rates will increase from next week because of a further rise in the Bank of England’s base rate. What are the new charges?
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Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
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Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
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Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
Following the announcement that inflation in February unexpectedly increased, the Bank of England swiftly announced another rise in the base interest rate. As HMRC’s late payment and repayment interest rates are linked to the base rate, they will increase again too. From 3 April 2023 the following rates will apply:
- Late corporation tax paid quarterly - 5.25%
- Interest on overpaid corporation tax - 4%
From 13 April, the rates for other taxes will apply:
- Late payment interest - 6.75%
- Interest on overpaid tax - 3.25%
Any overdue tax you owe will be subject to the higher rates from next week until the time payment is made.
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