HMRC has been criticised for increasing the rate of interest it charges on late tax payments. The Guardian reports that HMRC now charges 3% interest on late payments, even though the Bank of England's base rate has stayed at 0.5% since March. A spokesperson from accountancy firm UHY Hacker Young said that this was a sign of HMRC "clawing more money from taxpayers".
For more on this story go to:
http://www.guardian.co.uk/money/2009/sep/18/interest-rate-late-tax-payments
www.ukba.co.uk
Showing posts with label interest rates. Show all posts
Showing posts with label interest rates. Show all posts
Sunday, 11 October 2009
Tuesday, 16 June 2009
Record low interest rates must stay
A third of entrepreneurs have seen a positive impact on their business from the Bank of England’s decision to keep interest levels low, according to research from Tenon, but any signs of recovery remain fragile.
Commenting on today’s MPC decision, Andy Raynor, chief executive of Tenon Group, said:
“Maintaining this low rate of interest is good news for entrepreneurs as a third have found the lowering of interest rates to be beneficial to their business. However, any expectations of recovery this year may require additional stimuli as many entrepreneurs are still struggling to get back on their feet.
“Low interest rates are highly beneficial for small businesses, but these levels must remain in place for a considerable period of time. It is too early to be certain of any economic recovery this year and a rise in interest rates would be disastrous for confidence in the foreseeable future.”
The Group, which offers specialist advice to entrepreneurs, also found that those in Scotland have seen the most benefit from the cuts - 43% have seen a positive impact on their firms.
Source: Tenon
www.ukba.co.uk
Commenting on today’s MPC decision, Andy Raynor, chief executive of Tenon Group, said:
“Maintaining this low rate of interest is good news for entrepreneurs as a third have found the lowering of interest rates to be beneficial to their business. However, any expectations of recovery this year may require additional stimuli as many entrepreneurs are still struggling to get back on their feet.
“Low interest rates are highly beneficial for small businesses, but these levels must remain in place for a considerable period of time. It is too early to be certain of any economic recovery this year and a rise in interest rates would be disastrous for confidence in the foreseeable future.”
The Group, which offers specialist advice to entrepreneurs, also found that those in Scotland have seen the most benefit from the cuts - 43% have seen a positive impact on their firms.
Source: Tenon
www.ukba.co.uk
Tuesday, 10 February 2009
Will Interest Rate Cut Support Small Business?
FSB warns that a further interest rate cut will not work
The Federation of Small Businesses (FSB) is calling for the Bank of England (BoE) to hold fire on any further interest rate cuts ahead of the Monetary Policy Committee's decision on Thursday (5 February 2009).
Figures from a survey of over 4,000 small businesses show that the recent rate cuts have not provided the boost to the economy that many hoped for.
According to the poll almost two thirds (63 per cent) want the BoE to keep rates at their current level of 1.5 per cent. Only a quarter (24 per cent) said they would like a rate decrease – down from 58 per cent who called for a rate cut in a similar survey conducted in December 2008.
This indicates small businesses are not feeling the impact of the interest rate cuts and that access to finance, rather than the cost, remains a key problem.
John Wright, FSB National Chairman, said:
"These figures suggest that the recent interest rate cuts are not having the desired effect and other means of economic stimulus are required.
"Small businesses are clearly worried that this monetary policy has been used extensively over the last few months yet they are still struggling to access cheaper finance.
"The concern now is that if rates are cut any further there may not be too much more room for manoeuvre in the economy. The onus is really on the banks to start promoting these lower rates to fire up the economy."
David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"British business is not surprised by the MPC’s decision today. With the recession worsening, and deflation a distinct risk, there is still scope for further interest rate cuts in the next few months, to almost zero.
“But, with rates at very low levels already, the focus of UK monetary policy must now inevitably shift towards forceful quantitative and credit easing measures, with the aim of increasing the money supply and removing blockages in the credit markets.
“Given the Bank’s unduly cautious record in the early stages of the credit crisis, UK businesses must be reassured that the Bank will be prepared to implement unconventional techniques. This is vital in order to alleviate the recession, counter threats of deflation, and underpin falling confidence.”
The Federation of Small Businesses (FSB) is calling for the Bank of England (BoE) to hold fire on any further interest rate cuts ahead of the Monetary Policy Committee's decision on Thursday (5 February 2009).
Figures from a survey of over 4,000 small businesses show that the recent rate cuts have not provided the boost to the economy that many hoped for.
According to the poll almost two thirds (63 per cent) want the BoE to keep rates at their current level of 1.5 per cent. Only a quarter (24 per cent) said they would like a rate decrease – down from 58 per cent who called for a rate cut in a similar survey conducted in December 2008.
This indicates small businesses are not feeling the impact of the interest rate cuts and that access to finance, rather than the cost, remains a key problem.
John Wright, FSB National Chairman, said:
"These figures suggest that the recent interest rate cuts are not having the desired effect and other means of economic stimulus are required.
"Small businesses are clearly worried that this monetary policy has been used extensively over the last few months yet they are still struggling to access cheaper finance.
"The concern now is that if rates are cut any further there may not be too much more room for manoeuvre in the economy. The onus is really on the banks to start promoting these lower rates to fire up the economy."
David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
"British business is not surprised by the MPC’s decision today. With the recession worsening, and deflation a distinct risk, there is still scope for further interest rate cuts in the next few months, to almost zero.
“But, with rates at very low levels already, the focus of UK monetary policy must now inevitably shift towards forceful quantitative and credit easing measures, with the aim of increasing the money supply and removing blockages in the credit markets.
“Given the Bank’s unduly cautious record in the early stages of the credit crisis, UK businesses must be reassured that the Bank will be prepared to implement unconventional techniques. This is vital in order to alleviate the recession, counter threats of deflation, and underpin falling confidence.”
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