It has been brought to my attention that the rate of interest paid on income and corporation tax overpaid is about to drop.
To make life simple, there is an automatic link between the base rate and the rates of interest paid and charged, and with the recent rapid drop in the base rate, it's gotten to the point where it was hardly worth calculating the interest. However, with the base rate at 1.5%, the interest rate for overpayments should be almost negative, i.e. you get charged for the privilege of being owed money.
And so, as of 27 January, the interest rate for tax overpaid will drop to zero.
There is a silver lining though. If you owe HM Revenue & Customs money, we're only charging 3.5%. Why do I think that the Government is going to drop down the list of priority debtors?...
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