late payment 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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June 2023

WRLO Accountants — Fri, 02 Jun 2023 15:28:19 +0000

In this month’s Enews we look at the latest analysis of inflation and a reminder from HMRC on tax refunds. We also update you on record numbers of early self assessment filers and the latest increase in HMRC’s interest rates for repayments. With details on an increase in higher rate taxpayers and the new advisory fuel rates, there is a lot to update you on. UK rate of inflation fell sharply in April Don’t miss out on a tax refund for work expenses, HMRC urges Number of early self assessment filers doubles in five years HMRC increases late payment interest rate to 7% ‘Fresh thinking’ needed in regard to MTD for ITSA One in five workers will be higher rate taxpayers by 2027, says IFS Energy suppliers urged to renegotiate fixed contracts for small businesses Advisory fuel rates for company cars UK rate of inflation fell sharply in April The UK rate of inflation fell to 8.7% in April from 10.1% in March, according to the latest data from the Office of National Statistics (ONS). The fall has been attributed to energy price rises slowing from their hikes in 2022. The rate at which grocery prices rose slowed marginally in the […]

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April 2023

WRLO Accountants — Wed, 12 Apr 2023 09:20:32 +0000

In this month’s Enews we look at the measures taken in the Spring Budget and the business reaction to the Chancellor’s statement. We also update you on the abolition of the pensions lifetime allowance and the rising interest rates. With details on voluntary national insurance contributions and Welsh freeports, there is a lot to update you on. Capital allowances reformed in ‘Budget for growth’ Business groups welcome Spring Budget HMRC issues guidance on abolition of pensions lifetime allowance Bank of England raises UK interest rates to 4.25% HMRC late payment interest rate hits 6.75% Taxpayers given more time for voluntary national insurance contributions Two freeports confirmed for Wales Small businesses at risk as energy costs rise Capital allowances reformed in ‘Budget for growth’ A £27 billion transformation of capital allowances from April was announced by Chancellor Jeremy Hunt as he delivered a ‘Budget for growth‘. The Spring Budget followed an improved forecast from the Office for Budget Responsibility (OBR). The OBR said it expects the UK to avoid a technical recession this year, with a stronger-than-expected performance from the economy as inflation continues to fall. The Chancellor announced that a £27 billion transformation of capital allowances from April this year will include ‘full expensing’ […]

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