Chapter 6: Interest on late paid tax and repayments Flashcards
1
Q
interest on late payments and repayments
A
Interest is charged by HMRC at the bank base rate plus 2.5%. repayments of overpaid tax received repayment interest at the bank base rate minus 1%, with a minimum rate of 0.5%. Ant interest received is taxed as non-trading profit (LR). Any interest paid is treated as interest paid on a non-trading loan and can be deducted from non-trading profit (LR) income.
