New Official Rates of Interest
This may not appear to be the most exciting announcement, but it is nonetheless important especially if you owe HMRC back tax. HMRC have announced that from 6 January 2008 new lower rates of interest will apply:
The rate of default interest charged on:
* underdeclared VAT, air passenger duty, insurance premium tax, landfill tax, climate change levy, aggregates levy;* excessive repayments of VAT, insurance premium tax, land fill tax, climate change levy, aggregates levy and customs duties recovered by assessment; and
* late payment of customs duty.
changes from 8.5% to 7.5%.
The rate of statutory interest paid:
* where an official error has caused an overpayment, a failure to claim credit, or a delay in certain repayments of VAT, insurance premium tax, land fill tax, climate change levy, aggregates levy and excise duties; or* where there has been undue delay in processing a claim for repayment of excise duty and customs duty.
changes from 5.0% to 4.0%.
Related posts:
