New rates of interest on direct and indirect taxes and national insurance contributions paid late and overpaid have taken effect from 6 January 2009.

Legislation has also been put in place to enable HMRC to change its rates of interest faster following a movement in market rates. From 7 January 2009 most rates will change thirteen working days after the meeting of the Monetary Policy Committee of the Bank of England. Under previous legislation it took around a month to change most of the rates.

Full details of the changes in interest across the various tax heads is available at http://nds.coi.gov.uk/Content/Detail.asp?ReleaseID=388039&NewsAreaID=2