The Bank of England’s Monetary Policy Committee convened on the 10th of May 2023, voting 7 to 2 to raise interest rates by 25 basis points to 4.5%, a move intended to tackle the ongoing issue of inflation ...
In these fluctuating financial circumstances, a reliable and experienced tax advisor is essential!
This represents the twelfth successive increase by the MPC and HMRC interest rates, which are directly tied to the Bank of England base rate, have likewise seen an increase. HMRC has responded to these changes in two key areas: the interest charged on overdue taxes, and the rate paid on tax reimbursements.
To break down the specifics:
The interest on unpaid instalments of corporation tax liabilities, calculated as the base rate plus one, will rise
The interest for the late payment of other taxes, calculated as the base rate plus 2.5, will also experience an increase
The interest rate paid by HMRC on the overpayment of tax, calculated as the base rate minus one, will correspondingly increase
These adjustments apply to all taxes, including VAT for amounts due relative to periods starting on or after 1 January 2023
In these fluctuating financial circumstances, a reliable and experienced tax advisor is essential to navigate the increasingly intricate tax regulations and effectively plan to reduce tax liabilities where possible.
I always work to guide my clients through the labyrinthine tax regulations and provide strategic advice to grow their businesses and enhance profitability.
I'll keep you updated on any further developments.
Until next time ...
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If anything I've written in this blog post resonates with you and you'd like to discover more about HMRC's interest rate rise, do give me a call on 01908 774323 and let's see how I can help you.
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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