HM REVENUE AND
CUSTOMS News Release (Ref:NAT 16/09) issued by COI News Distribution
Service. 17 February 2009
Interest rates
charged on late payments and paid on overpayments for corporation
tax quarterly instalment payments (QIPs) and also early payments
of corporation tax not due by instalments have now been cut, HM
Revenue & Customs (HMRC) confirm.
The new rates took effect from 16 February 2009.
The rates covering late payments and overpayments of all other
direct taxes, indirect taxes and national insurance contributions
remain unchanged this month.
HMRC continues to look at ways to simplify and harmonise the
rules for interest charged and paid across all taxes and duties.
In June 2008 a consultation document was published 'Interest
- working towards a harmonised regime'. This was followed in
November 2008 by a further consultation document. Both documents
are available to view on the HMRC website.
Full details of the rate changes are available on HMRC's
website at http://www.hmrc.gov.uk/news/interest-rates1602.htm.
Notes for editors
1. All interest rates charged and paid by HMRC are set by
reference to formulae set out in legislation. The starting point
for calculating the rate of interest is the 'reference
rate'. The reference rate is the average of the basic lending
rates applied by six of the UK's banks to which a
'rounding' rule is applied in most cases. The
'rounding' rule reduces or increases the average rate to
the nearest whole number. The reference rate is then used in the
statutory formula and then rounded once more to calculate the rate
that should be applied. These statutory rules mean that HMRC rates
do not always change.
2. This calculation is undertaken after all meetings of the
Monetary Policy Committee.
Issued by HM Revenue & Customs Press Office
Press
enquiries only please contact:
Madonna Grant
Tel: 020 7147
2331
E-mail: madonna.grant@hmrc.gsi.gov.uk
Website http://www.hmrc.gov.uk