How to save from the new rise in penalty interest rates by HMRC

ANOTHER RISE IN PENALTY INTEREST BY HMRC

Another increase in interest rates of HMRC charges for unpaid taxes will take effect on 15 August.

What are the rates and how will they change?

The Bank of England announced it would increase the base interest rate by 0.5% starting 4 August 2022.?HMRC announced that the range of penalties and interest rates would increase as well.?

The following rates will be charged by HMRC and are payable starting on 15 August:

• Quarterly late corporation tax - 2.75%
• Overpayment interest on corporation tax - 1.5%

The rates for income tax and other taxes will be applicable starting 23 August.

• Late payment interest - 4.25%
• Interest on tax overpaid - 0.75%

How to save money from excessive penalty interest charges?

If you have received a letter from HMRC stating that you must settle your outstanding debts, you need to act quickly to avoid paying excessive interest rates after the cut-off date.?To get professional advice, you can contact?CoreAdviz Accountants .

• Worldwide overseas assets and gain disclosure (DDS) or
• Letting campaign disclose income from rented property or
• Missed self-assessment due dates and filing return or
• Delayed in payment on account to settle on due date timeline or
• Not submitted a corporation tax return for your business and received a penalty notice.