HMRC cuts interest on late payments

Date: 21st January 2009

Interest charged on late taxation payments is to be reduced in accordance with the recent Bank of England base rate cut.

The new rates will also cover overpayments made to HM Revenue and Customs (HMRC), including business rates, national insurance and a variety of other non-direct taxes.

Reduced interest on quarterly instalments and early payment of corporation tax not due by instalments will take effect immediately, and will come into force on all other taxes from January 27th.

The department said in a statement: "HMRC continues to look at ways to simplify and harmonise the rules for interest charged and paid across all taxes and duties."

It added that this was shown by its publication of two consultation documents in June and November last year - both of which are available on HMRC's website.

Elsewhere, small businesses - such as partnerships and sole traders - now have ten days in which to complete a self-assessment tax return and file online with HMRC.