HM Revenue and Customs (HMRC) is set to raise its interest rates for late payments following a recent decision by the Bank of England - and the changes will affect thousands of people
Following the Bank of England's cut in the base rate from five percent to 4.75 percent, HM Revenue and Customs is preparing to revise its interest rates for late payments. The drop in the base rate triggers a decrease in HMRCs rate, so the late payment rate will be lowered from 7.5 percent to 7.25 percent and the repayment rate will go down from 4 percent to 3.75 percent.
Furthermore, this information page also reveals why the Government has chosen these specific rates, outlining: "The differential between late payment interest and repayment interest is in line with the policy of other tax authorities worldwide and compares favourably with commercial practice for interest charged on loans or overdrafts and interest paid on deposits."
They expressed their frustration, saying: "If I wanted to buy back NI credits and can't do it online, how would I go about it please? Tried calling the Future Pension Service but just get referred back to the website and cut off."
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