Following the bank rate down still further, HMRC has reduced interest rates on late paid tax from 16 March and 24 March 2009. Many taxpayers are already on 0 per cent repayment supplements so this rate will not fall further, but the new rates are :
Changes from 16 March 2009
- On underpaid instalments of Corporation Tax (under the QUIP's rules) down from 2 per cent to 1.5 per cent.
- On overpaid instalment payments and Corporation Tax other liabilities paid early down from 0.75 per cent to 0.25 per cent
Changes from 24 March 2009
- On late paid income tax, capital gains tax, National insurance contributions and stamp duties reduces from 3.5 per cent to 2.5 per cent
- On late paid VAT, Air passenger duty, Insurance premium tax, climate change levy and landfill tax down from 3.5 per cent to 2.5 per cent
- Repayment supplement on overpayments of the same taxes is unchanged at 0 per cent.
Rates charged on late payment of other tax liabilities including old corporation tax liabilities are also reduced. The detail of these rates is available here.
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