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As mentioned in our newsletter in early August, HMRC announced that the interest rates for late and overpaid PAYE tax and NICs would be recalculated following the September meeting of the Monetary Policy Meeting (MPC), even if there were no increase to the Bank of England base rate.

On 10 September the MPC agreed to keep the base rate at 0.5%. From 29 September, i.e. 13 working days after the MPC meeting, and using the new statutory calculation rules for determining interest rates,

• the interest rate for late tax/NICs increases from 2½% to 3%, i.e. base rate + 2½%, and
• the interest rate for overpaid tax/NICs increases from 0% to ½%, i.e. base rate - 1%, but increased to ½% which is now the statutory minimum rate.

The following Table shows the changes over the past year:

Further information:
HM Revenue & Customs interest rates

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The UK Payroll News is sponsored by HRD & Payroll Solutions

Written by Ian Congreave -

Filed under: Interest Rates on September 23rd, 2009

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