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Increased rates of interest on direct and indirect taxes and national insurance contributions (NICs) paid late and overpaid take effect from 6 August 2007. The main rate increases are as follows: Income tax, NICs, CGT, stamp duties etc. The rate of interest charged on income tax, NICs, capital gains tax (CGT), stamp duty, stamp duty land tax and stamp duty reserve tax paid late, tax credits overpayments in cases of fraud, neglect and on penalties charged, and on tax charged by an assessment for the purpose of making good to the Crown a loss of tax wholly or partly attributable to failure or error by the taxpayer increases from 7.5% to 8.5%. The rate of interest on overpaid income tax, NICs, CGT, stamp duty, stamp duty land tax and stamp duty reserve tax (repayment supplement) changes from 3% to 4%. Income tax on company payments that became due on or after 14 October 1999 The rate of interest on late payment of income tax on company payments which became due on or after 14 October 1999 increases from 7.50% to 8.50%. Inheritance tax The rate of interest for late payments or repayments of inheritance tax, capital transfer tax and estate duty increases from 4% to 5%. Corporation tax The rate of interest for either late payments or repayment of corporation tax for accounting periods ended on or before 30 September 1993 (pre CT (pay and file)), changes from 5.75% to 6.5%. The rate of interest charged on unpaid corporation tax for accounting periods ending on or after 1 October 1993 (under CT (pay and file)) changes from 6% to 6.75%. The rate of interest paid on overpaid corporation tax for accounting periods ending on or after 1 October 1993 (under CT (pay and file)) changes from 2.75% to 3.5%. The rate of interest on unpaid corporation tax for accounting periods ending on or after 1 July 1999 (other than underpaid CT instalments) changes from 7.5% to 8.5%. The rate of interest on overpaid corporation tax for accounting periods ending after 1 July 1999, in respect of periods after the normal due date, changes from 4% to 5%. VAT The rate of default interest charged on underdeclared VAT and excessive repayments of VAT increases from 7.5% to 8.5%. The rate of statutory interest paid where an official error has caused an overpayment, a failure to claim credit, or a delay in certain repayments of VAT changes from 4.00% to 5.00%. Link
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Tuesday, 14 August 2007 | 868 Hits |
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