Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

HMRC’s lower interest rate on late payments overshadows refund disparity

by November 13, 2024
November 13, 2024
HMRC’s lower interest rate on late payments overshadows refund disparity

HMRC will reduce the interest rate it charges on late tax payments to 7.25% from 18th November, following the recent cut in the Bank of England’s base rate.

However, this reduction highlights a stark disparity: taxpayers will receive only 3.75% interest on tax refunds, leaving a 3.5% gap in favour of HMRC.

The revised interest rates apply to new tax debts and quarterly instalment taxpayers from 18th November and will be effective from 26th November for those on non-quarterly plans. While any reduction in interest charges may sound beneficial, tax insurance specialist Qdos warns that the focus should remain on meeting the 31st January self-assessment deadline to avoid late payment penalties.

Seb Maley, CEO of Qdos, voiced concerns over the interest rate difference, stating, “The real talking point here – the elephant in the room – is the difference between the interest rate HMRC charges on late payments and the rate it offers on refunds. While this approach may align with practices of other tax authorities, it feels particularly unfair to the self-employed, who are often disproportionately impacted.”

With January’s self-assessment deadline approaching, taxpayers are reminded to prioritise timely compliance to avoid the 7.25% late payment interest rate and additional penalties. Taxpayers awaiting refunds, however, may see a reduced rate of 3.75% – a disparity that raises questions about fairness in the system.

Maley added, “More than ever, self-employed individuals need to be vigilant about tax compliance, as late payments can come at a high cost. HMRC’s higher charges on late payments compared to refunds remain a contentious issue that deserves further scrutiny.”

As the self-assessment deadline nears, taxpayers are encouraged to take all necessary steps to ensure timely payments, avoiding potential penalties in an economic climate where every percentage point matters.

Read more:
HMRC’s lower interest rate on late payments overshadows refund disparity

0
FacebookTwitterGoogle +Pinterest
previous post
Trinny Woodall Takes Top Honour at Lloyds British Business Excellence Awards
next post
Post Office faces backlash over potential closure of 115 branches as jobs and services are at risk

You may also like

Post Office awards new deal for IT system...

April 19, 2023

“A turning point for education”: James Caan launches...

July 5, 2025

US wants UK to open up its agriculture...

October 4, 2023

CIPD: Spring statement fails to support employers, risking...

March 27, 2025

Defence sector confident of job surge as firms...

July 21, 2025

UK retailers boosted by November sales of winter...

December 6, 2022

Interview with Zenity CEO & Co-Founder, Ben Kliger

September 30, 2022

Businesses backed by private equity face heightened default...

October 2, 2024

CCI Kenya on the benefits of outsourcing administration...

June 27, 2023

Sunak puts Brexit bill on ice as hopes...

December 12, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • CDC Director Susan Monarez refuses to be fired as other officials call it quits

      August 28, 2025
    • Bill Gates met with Trump to talk ‘importance of US global health programs and health research’: spox

      August 28, 2025
    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025
    • Three Years of Sounding the Debt Alarm at Cato and on the Debt Dispatch

      August 27, 2025
    • Trump Administration Rightly Attacks EU Tech Regulations but Tariffs and Censorship at Home Harm Americans 

      August 27, 2025
    • White House demands all Gaza hostages return home ‘this week’ amid stalled talks

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved