Bank of England delays latest interest rate rise
Her Majesty, Queen Elizabeth II passed away on 8 September 2022. In the wake of this, the Bank of England has delayed announcing the latest change to interest rates. What do we know?
The nation is currently observing a ten-day national mourning period following the death of Queen Elizabeth II at the age of 96. The government has announced that 19 September will be a bank holiday to coincide with the funeral. The Bank of England also announced that it was delaying it's scheduled monetary committee meeting by a week, with the new date being 22 September.
The committee agrees changes to the base interest rate. This has increased several times this year in an effort to curb inflation. Leading economists had expected the rate to increase from its current level of 1.75% to 2.25%, which would be the highest level since the 2008 financial crisis. Of course, this would have a knock-on effect to interest rates that are pegged to the base rate, including HMRC's. As a result, the interest charged on any overdue tax will shortly increase, albeit later than may have been the original case.
Related Topics
-
Corporation tax return filing deadline
-
Don’t overlook the partial exemption annual adjustment
As VAT year ends approach for many businesses, HMRC’s guidance highlights the need to carry out the partial exemption annual adjustment. This is often overlooked but can have a direct impact on recoverable VAT. What do you need to check?
-
MONTHLY FOCUS: USING YOUR COMPANY TO DIVERT INCOME TO FAMILY MEMBERS
Operating a business through a limited company is less tax-efficient than it used to be. However, it can still be a very useful way of diverting income to other family members. In this Monthly Focus, we look at the methods, and associated considerations, involved in doing this.