Penalty interest rate set to rise again
The Bank of England raised its base rate again in June, and HMRC has confirmed the penalty rate of interest on late-paid tax will follow suit. What will the new rate be and when will it start to apply?
The base rate has been increased several times already in 2022 as the Bank of England attempts to exert some control on spiralling inflation. The latest increase (on 16 June) set the rate at 1.25%. This means that HMRC’s penalty interest rate will rise to 3.75% (up from 3.5%). HMRC has confirmed that this will take effect from 27 June for quarterly instalment payments, and from 5 July for everything else.
Related Topics
-
Tackling the rise of revenge quitting
A rising career trend in 2025 is so-called revenge quitting. What is it and what can you do about it?
-
Tax trap when renting to relatives
Your cousin is in financial difficulties and has nowhere to live. One of the properties you let is vacant and you’ve offered it to him as a temporary home. You’ll only charge him a minimal rent. How might this negatively affect your tax position?
-
Temporary workers - your pension obligations
If you’re employing temporary workers for the summer season don’t forget that they have the same rights to join your workplace pension as permanent employees. What do you need to do?