I am pleased to see that HMRC have finally decided to cut their interest rates, in response to the ongoing cuts in UK base rates.
The rate that HMRC charges tardy taxpayers has been reduced from 4.5% to 3.5%.
Unfortunately, as with many matters related to HMRC, there is one small fly in their oinkment. Up until now, where tax had been overpaid, HMRC paid 0.75% on the overpaid amount.
Can you guess what they will pay now?
Yes, that's right:
ZILCH!
One rule for HMRC, another for the taxpayer.
Tax does have to be taxing.
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The probability is that many self employed will be paying far too much tax up front due to the downturn.
ReplyDeleteThen there are the usual sorts like us pensioners who get tax deducted from pensions and savings income (that does not even match inflation) that has to be claimed back in arrears.
This is just another bit of HMRC robbery to pay for Brownstuff's overbloated state sector and his utter cockup of the economy.
It is reasonable they should not pay rates that will make people overpay to get a good return but with banks still paying almost 2% plus a 1% first year bonus for instant access accounts, zero is quite unjustifiable.
What do you expect from Her Majesty's Runts and Cretins? I am trying to submit my self assessment payment and they are automatically adding a late payment penalty and interest for a payment on account balance of £0.00!!!!!!!!!!!!!!!!!!
ReplyDeleteHMRC are profiteering and should pay a windfall tax on the interest they receive.
ReplyDeleteIn January 2008 the differential between the charge and the credit given was 2.5%.
In January 2009 it's 3.5%!!
(It puts the banks to shame).