Taxpayers warned as interest on late payments hits 8.5 per cent

Taxpayers warned as interest on late payments hits 8.5 per cent

A recent change in legislation has seen HM Revenue & Customs (HMRC) increase the interest charged on late tax payments. As of 6 April, those missing deadlines will now face a hefty 8.5 per cent interest charge. A change in HMRC’s interest policy Previously, late payment interest was calculated at the base rate plus 2.5 per cent. Under the new structure, the rate is the Bank of England’s base rate + four per cent. Given the current base rate of 4…

Late tax payments now charged at 8.5 per cent as HMRC hikes interest rate

Following changes to legislation, HM Revenue & Customs (HMRC) has revised the way it calculates interest on late and early payments, linking it more closely with the Bank of England base rate. The change increases the cost of missing a payment deadline, something every taxpayer should take seriously. What is the new late payment interest... The post Late tax payments now charged at 8.5 per cent as HMRC hikes interest rate appeared first on Clay …

Labour’s late payment laws: 6 months on

Almost all small business owners (97 per cent) haven’t seen any reduction in late payments since the government’s Fair Payment Code was introduced, according to data from Simply Business.  Under new laws, larger companies will be held to account and the Small Business Commissioner has greater enforcement powers. But with the issue of late payments persisting for most businesses, it seems the initiatives are yet to have an impact.  Read on to fin…