Provision of Beneficial Employment-Related Loans - Official rate of increases from April 2007

From 6 April 2007, the official rate of interest increases from 5% to 6.25%. The rate applies to the provision of free or low interest loans to employees during the 2007/08 tax year. The tax charge is on the difference between any interest paid by the employee and the interest which would have been paid at the official rate of interest.

The official interest rate in force at the beginning of a tax year is also used when calculating the cash equivalent of the provision of living accommodation that cost over   75,000.

...UK Payroll News - Latest


Sources:
The Taxes (Interest Rate) (Amendment) Regulations 2007
Explanatory Memorandum

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New rates of interest on direct and indirect taxes and national insurance contributions paid late and overpaid have been announced. The new rates take effect from 6 September 2005.

The rate of interest charged on income tax and NICs paid late falls from 7.5% to 6.5%. The rate paid on overpaid tax and NICs reduces from 3% to 2.25%.

...back to 22 September 2005


Sources:
HM Revenue & Customs Interest Rates

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