Two new statutory instruments have been published, both of which come into force on 31 August 2010.
The first specifies the amount of interest due on monies payable to HMRC and interest payable by HMRC.
- In respect of interest on sums due to HMRC, the rate is calculated by reference to the Bank of England base rate plus 2.5%.
- In respect of interest payable by HMRC, the rate is calculated as the higher of 0.5% per annum or the Bank of England base rate - 1%.
The second statutory instrument, applies the new interest regime to Bank Payroll Tax.
These two statutory orders are part of HMRC’s agenda to standardise interest rates across all taxes and duties in the UK.