HMRC Interest Rates
HMRC have announced some further changes to interest rates which take effect from 16 February 2009. These changes are relevant only for Corporation Tax. The interest rates for other direct taxes, indirect taxes andNational Insurance contributions have not changed this month.
The rate of interest on underpaid instalment payments reduces to 2% (from 2.5%) whilst the rate of interest on overpaid instalment payments reduces to 0.75% (from 1.25%).
The revised interest rates are based on the average base lending rate (currently 1%).