Interest rates on money Revenue & Customs owes to taxpayers are set to be slashed to zero, as the government seeks to pass on falling market rates to its agency.
From Tuesday, the agency explained the rate of interest on overpaid income tax, National Insurance, capital gains tax and stamp duty, will effectively be cancelled out.
The move is likely to spark criticism of the ongoing gap between the levy taxpayers pay when their filing is late and the levy HMRC owes when it overpays.
Seeming to head off the backlash, rates fixed on late payments will fall from 4.5 per cent to 3.5 per cent, providing some relief to taxpayers who delayed paying their bills.
Meanwhile, taxpayers’ advisors yet to upload self-assessment returns are encouraged to avoid last-minute filing following a software conflict with Internet Explorer.
“Essential maintenance” to HMRC’s site also means all users who filed between midnight last night and 01.30 today will have their acknowledgment receipts delayed.
In an alert to advisors, the Revenue said submitted accounts will be confirmed afterwards and asked users not to attempt to resubmit their return.
Jan 26, 2009
Email this article
Printer friendly page
Previous Page
