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HMRC Interest Rates
HMRC have announced a reduction in the beneficial loan rate of interest from 6.25% to 4.75% from 1 March 2009. This is the rate of interest which is used to calculate the value of the benefit provided to employees where they receive a cheap or interest free loan from their employer.
This loan interest, along with other benefits and expenses provided to employees, should be reported to HMRC on a form P11D. Please do get in touch if you require help with the completion of these forms which are completed on a tax year basis.
HMRC have also revised interest rates on late payment of tax. The main rate is reduced to 2.5% from 24 March. It remains the case that the interest that HMRC pay on delayed repayments of tax is 0% (yes 0% - sportingly, they have confirmed that they even if base rate drops again, they have no intention for the interest rate on delayed repayments to go negative).
Internet link: HMRC guidance
