Corporation Tax Archives - WRLO Accountants

HMRC cuts late payment interest rate to 8%

WRLO Accountants — Mon, 25 Aug 2025 16:13:34 +0000

HMRC will reduce late payment and repayment interest rates from 27 August following the 0.25% cut in the base rate earlier in the month. The Bank of England cut the base rate to 4% on 7 August, triggering a 0.25% cut in HMRC interest rates which are pegged to the base rate. From 27 August, the late payment interest rate will be cut to 8.0% from 8.25%. The repayment interest rate will be cut to 3% from 3.25% from 27 August. HMRC late payment interest is set at base rate plus 4%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%. Following the cut to the base rate, Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said: ‘The small business community will now look to lenders to reflect this rapidly across their offering, cutting the cost of finance. They will also want to see the Bank of England set out a clear path for the rest of the year, with a further easing in the base rate badly needed to reduce the financial strain they are under. ‘There will be no growth in the economy overall […]

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Companies House begins to verify identities

WRLO Accountants — Sat, 19 Apr 2025 12:11:10 +0000

A new service has been launched that allows individuals to verify their identity directly with Companies House through GOV.UK. The introduction of identity verification is one of the key changes to company law as part of the Economic Crime and Corporate Transparency Act 2023. Companies House has landmark new and enhanced powers to combat economic crime and boost economic growth. More than six million people will be required to comply in the 12 months after identity verification becomes a legal requirement later this year. According to Companies House, identity verification will provide more assurance about who is setting up, running, owning and controlling companies in the UK. Louise Smyth, CEO of Companies House, said: ‘Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register. ‘To save time later, we encourage directors, people with significant control of companies (PSCs) and those filing information with Companies House to verify their identity during the voluntary window. ‘We expect identity verification to become mandatory from Autumn 2025.’ Internet link: GOV.UK

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HMRC late payment interest cut by 0.25%

WRLO Accountants — Thu, 05 Sep 2024 10:23:35 +0000

HMRC has reduced late payment and repayment interest rates following the cut to the base rate. The Bank of England cut the base rate to 5.0% on 1 August, the first reduction for over four years. This has triggered a cut in HMRC interest rates which are pegged to the base rate. From 20 August, the late payment interest rate was cut to 7.5% from 7.75%, where it had been for 12 months. The repayment interest rate was also reduced to 4.0% from 4.25% from 20 August. HMRC late payment interest is set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%. Corporation tax self assessment interest rates relating to interest charged on underpaid quarterly instalment payments dropped to 6.0% from 6.25% from 12 August. The interest paid on overpaid quarterly instalment payments and on early payments of corporation tax not due by instalments is down by 0.25% to 4.75% from 5% from 12 August. Internet link: GOV.UK

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