TaxCorporate TaxTaxman denies profiting from tax refund delays

Taxman denies profiting from tax refund delays

HM Revenue & Customs denies holding on to money due to low interest rate

The taxman has denied that is profiting by holding back on tax refunds.

With HM Revenue & Customs charging 0.5% interest on tax it is due to repay but 3% on bills that are due, the Telegraph suggested that the taxman had a “vested interest” in delaying payment.

Advisers said that the taxman was taking longer to pay out refunds, with some being delayed by as much as ten weeks while random security checks were undertaken – described as excessive by Smith & Williamson head of tax Richard Mannion.

An HMRC spokesman told the newspaper that most refunds were paid “very promptly” and that its rate on overpaid tax reflected a return on deposits while the rate on unpaid tax was designed to encourage payment at the right time.

“If the interest rate on overpaid tax was too high, it might encourage banking with HMRC,” said the spokesman.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

2m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

8m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

10m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

11m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

1y Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

1y Emma Smith, Managing Editor
HMRC nets £2.6bn in corporate tax from big businesses

Corporate Tax HMRC nets £2.6bn in corporate tax from big businesses

1y Accountancy Age editorial