interest Archives - WRLO Accountants

HMRC cuts late payment interest rate to 8.25%

WRLO Accountants — Tue, 20 May 2025 09:11:52 +0000

HMRC will reduce late payment and repayment interest rates from 28 May following the 0.25% cut in the base rate last week. The Bank of England cut the base rate to 4.25% on 8 May, triggering a 0.25% cut in HMRC interest rates which are pegged to the base rate. From 28 May, the late payment interest rate will be cut to 8.25% from 8.5%, which was the highest rate charged since February 2000. The repayment interest rate will be cut to 3.25% from 3.5% from 28 May. 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 David Bharier, Head of Research at the British Chambers of Commerce said: ‘Many firms, desperate for financial respite, will be keen to see further rate cuts in the months ahead. ‘National insurance hikes, alongside other cost pressures, are already having an impact, including increased prices, hiring freezes, and reduced investment. ‘The next few months are likely to remain volatile and the full impacts of a global trade war are still uncertain. Businesses will be […]

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UK’s investment rates worse than every other G7 country

WRLO Accountants — Fri, 05 Jul 2024 16:55:31 +0000

The UK has the lowest rates of investment of any other country in the G7, according to analysis by the Institute for Public Policy Research (IPPR). It found that, compared to the USA, Germany, France, Italy, Canada and Japan, the UK was in last place for business investment in 2022. The IPPR also revealed that the UK has been bottom of the G7 league for investment in 24 out of the last 30 years. It said that the UK has the lowest rates of investment of any G7 economy, and that it ranks 28th out of 31 Organisation for Economic Co-operation and Development (OECD) countries for business investment. According to the IPPR, countries such as Hungary, Slovenia and Latvia attract higher levels of private sector investment than the UK as a percentage of GDP. Dr George Dibb, Associate Director for Economic Policy at the IPPR, said: ‘If the economy is an engine, then investment is its fuel. The UK’s dire productivity performance is the single biggest driver of our dire living standards. Without resources flowing into new investment, it’s hard to see how UK economic performance can improve.’ Internet link: IPPR website

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Interest rates held as inflation falls

WRLO Accountants — Mon, 09 Oct 2023 15:32:05 +0000

The UK’s base rate of interest was held at 5.25% in September as the rate of inflation fell to 6.7% in the year to August 2023. The fall in the rate of inflation surprised economists, who expected it to rise. The Consumer Prices Index (CPI) fell from 6.8% in July to 6.7% in August. Slowing food price increases helped drive the fall, the Office for National Statistics (ONS) found, particularly prices for eggs, milk and cheese. Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), said: ‘Inflation fell again in August, defying expectations of a slight uptick. We expect inflation to continue falling over the rest of this year, but the recent uptick in global oil and domestic fuel prices means that the path back down may now be bumpier.’ Following the fall in the rate of inflation, interest rates were left unchanged at 5.25% by the Bank of England’s Monetary Policy Committee (MPC). The MPC had previously raised rates 14 times in a row to tame inflation, leading to increases in mortgage payments but also higher savings rates. Shevaun Haviland, Director General of the British Chambers of Commerce (BCC), said: ‘Businesses will be giving a cautious welcome […]

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