HMRC's lower interest rate on late payments overshadows refund disparity

The real talking point here - the elephant in the room - is the difference between the interest rate HMRC charges on late payments and the rate it offers on refunds. While this approach may align with practices of other tax authorities, it feels particularly unfair to the self-employed, who are often disproportionately impacted.

More than ever, self-employed individuals need to be vigilant about tax compliance, as late payments can come at a high cost. HMRC's higher charges on late payments compared to refunds remain a contentious issue that deserves further scrutiny.

Taxpayers are reminded to prioritize timely compliance to avoid the 7.25% late payment interest rate and additional penalties. Taxpayers awaiting refunds may see a reduced rate of 3.75% - a disparity that raises questions about fairness in the system.

Read at Business Matters