Inland Revenue penalises late payers
The Inland Revenue is raising the interest rate charged on unpaid income tax by one percent.
The rate is increasing from 5.5% to 6.5%, some four times the increase in the base rate announced by the Bank of England.
Grant Thornton was highly critical of the move.
Ian Luder, tax partner at Grant Thornton said: ‘This is yet another example of the Revenue raising money by a system of “stealth taxes”. For people with large tax bills to pay, overpayment or late payment could now cost them significantly more than they expect.’
The Revenue also announced that the rate it pays on overpaid tax would rise by 0.75% to 2.5%. Grant Thornton complained that tax-payers had little time to sort out their affairs with the changes taking effect on 6 December.