HMRC late payment interest rates to be revised after Bank of England increases base rate

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HMRC interest rates for late payments will be revised following the Bank of England interest rate rise to 2.25%.

The Bank of England Monetary Policy Committee voted on 22 September 2022 to increase the Bank of England base rate to 2.25% from 1.75%.

HMRC interest rates are linked to the Bank of England base rate.

As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will increase.

These changes will come into effect on:

  • 3 October 2022 for quarterly instalment payments
  • 11 October 2022 for non-quarterly instalments payments

Information on the interest rates for payments will be updated shortly.

HMRC interest rates are set in legislation and are linked to the Bank of England base rate.

Late payment interest is set at base rate plus 2.5%. Repayment interest is set at base rate minus 1%, with a lower limit – or ‘minimum floor’ – of 0.5%.

The differential between late payment interest and repayment interest is in line with the policy of other tax authorities worldwide and compares favourably with commercial practice for interest charged on loans or overdrafts and interest paid on deposits.

The rate of late payment interest encourages prompt payment and ensures fairness for those who pay their tax on time, while the rate of repayment interest fairly compensates taxpayers for loss of use of their money when they overpay or pay early.

Published 22 September 2022




Human rights in Russia: UK statement on OSCE’s Moscow Mechanism expert report

Thank you, Mr Chair. I wish to make a statement in my national capacity, to supplement the statement delivered by Ambassador Callan on behalf of the 38 States which invoked the Moscow Mechanism on Russia’s legal and administrative practices.

I would like to thank the independent expert Professor Nußberger for her expertise and her drafting of a robust and important report.

Mr Chair, the United Kingdom supported the invocation of this Moscow Mechanism because the issue of Russia’s repression of human rights is vitally important. It is important to the Russian people who face restrictions on their fundamental freedoms and it is important for peace and security in the OSCE region.

I want to highlight 3 elements of this forensic report. First, President Putin’s Russia has waged a systemic and a repressive war against the freedoms of its own people over the last two decades. Repressive legislation is used to restrict the rights of Russian people, most notably through the “foreign agents” and “undesirable organisations” laws.

Since the invasion, the Kremlin has implemented a wave of legislation targeting the dissemination of “knowingly false information” and “discrediting” of Russian armed forces. The real purpose is to criminalise the dissemination of the truth and for calling Russia’s illegal invasion of Ukraine what it is. Over 4,000 people have been prosecuted because of these laws, including dual British Russian national Vladimir Kara-Murza. As the report says, “this is military censorship”.

Secondly, Russia has created a climate of fear and intimidation to silence independent voices further. President Putin and the authorities employ propaganda to de-humanise Russian civil society. Murders and physical attacks are either carried out on the direct orders of the Kremlin, or are tacitly welcomed with no follow-up investigations. Between 1992 and 2021, at least 58 journalists were killed in Russia in connection with their work.

Police use violence and intimidation to suppress anti-war protestors. Over 16,000 people have been arrested. And overnight over 1,000 more were arrested for peacefully protesting mobilisation. The report highlights many cases of violence towards those detained. Grigory Yudin, a political scientist, was arrested at an anti-war protest and beaten in a police van until he lost consciousness. Female protestors were arrested, forced to undress, and physically attacked.

Thirdly, Russia’s domestic repression is a key enabler of its aggression abroad. Professor Nußberger writes that “repression on the inside and war on the outside are connected to each other as if in a communicating tube.” A tightening of freedoms at home allows the State to pursue conflict abroad with limited domestic accountability. This state of perpetual war provides a justification for further restrictive measures domestically. And we are seeing the grim outcome of this interrelation play out in Ukraine.

Mr Chair, this report reveals the horrifying scale of restrictive policies implemented by Russia over the last decade. Putin pursues these policies because he fears that a free society would hold him accountable for the abuses his regime have committed at home, and restrain his ability to commit abuses abroad. The tragedy is that both Russian and Ukrainian people, particularly vulnerable groups, are enduring the worst effects of this repression.

The UK, with partners from across the OSCE and the world, will defend human rights and the fundamental freedoms of citizens everywhere. We call on Russia to heed the warnings and recommendations of this Moscow Mechanism report. In particular, to comply with its OSCE Human Dimension obligations, and to critically assess the short- and long-term consequences of the “foreign agents” law, amongst other repressive legislation, on civil society.

I want to express the United Kingdom’s solidarity with all those who suffer repression at the hands of the Russian authorities. And to reiterate once again our resolute support for Ukraine’s sovereignty and territorial integrity within its internationally recognised borders.




Broad comparability

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Broad comparability assessments, which relate to protecting future pension rights, will resume in full later this year.

Pensive Businessman at Laptop

Pensions experts at the Government Actuary’s Department (GAD) are set to restart ‘broad comparability’ assessments in full. These will resume in the autumn for service before April 2022.

This follows on from the resumption of assessments in respect of service from April 2022 announced earlier in the year.

Broad comparability

Broad comparability primarily relates to protecting future pension rights. It applies to compulsory transfers of staff within the public sector. It can also apply in other circumstances.

The policy in such transfers is generally to protect transferring staff. New employers should offer them pension benefit packages which are at least ‘broadly comparable’ to the pension benefits offered by their old employer.

A pension arrangement does not need to offer identical benefits to be deemed ‘broadly comparable’. Instead, it must offer broadly the same range of benefits, with the same (or greater) overall value. A broad comparability assessment includes both quantitative and qualitative tests.

Restart assessments

Work on most broad comparability assessments at GAD was paused in August 2020 in response to the McCloud age-discrimination judgment. They were partially restarted earlier this year when several technical uncertainties that flowed from the remedy in response to that judgment were resolved.

Actuary Ian Boonin leads on staff transfers at GAD. He said: “Having partially restarted broad comparability assessments earlier this year, I am very pleased that we’ll soon be able to restart our broad comparability work in full for our clients.

“The remedy that followed on from the McCloud judgment will mean some of the work will be more complicated. When it comes to broad comparability assessments, we’ll need to consider pre- and post-reform benefits across old and new pension schemes for affected members.”

GAD is set to restart pre-31 March 2022 assessments this coming autumn.

Published 22 September 2022




Human rights in Russia: joint statement on OSCE’s Moscow Mechanism expert report

I am delivering this statement on behalf of the following 38 participating States that invoked the Moscow (Human Dimension) Mechanism on 28 July: Albania, Andorra, Austria, Belgium, Bulgaria, Canada, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montenegro, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, the United Kingdom, and the United States.

Professor Nußberger, on behalf of the invoking States I wish to thank you for your work as Rapporteur under the OSCE’s Moscow Mechanism. We are most grateful for your professional and meticulous approach to your mandate, for the thorough methodology that you have applied and for the substantial report which you have produced. Your integrity and dedication to human rights and fundamental freedoms are evident in your report. We hope that all 57 participating States to the OSCE will do justice to your report by considering carefully your findings and recommendations, which are addressed not only to the Russian Federation but also to OSCE participating States and the wider International Community.

Mr Chair, we invoked the Moscow Mechanism because we identified the situation in the Russian Federation as a particularly serious threat to the fulfilment of the provisions of the OSCE human dimension as set out in various documents. The mandate provided was substantial, reflecting the scope and severity of the alleged human rights violations and abuses.

It is clear from the report that we were right to be concerned. The report is based on in-depth analysis of Russian Federation legislation, extensive documentation, including decisions by the European Court of Human Rights, opinions by the Venice Commission, statements by the autonomous institutions of the OSCE and other international organizations, and reports and testimonies by civil society. Regarding the legislative changes in the realms of freedom of association, freedom of expression, and freedom of peaceful assembly, the report concludes, “Russian legislation is obsessed with restricting these rights more and more. […] Russian legislation in this area is clearly incompatible with the rule of law. On the contrary, the multitude of detailed provisions gives the authorities wide discretionary powers and thus provides the basis for arbitrariness.” The report goes on to shed light on the correlation between peaceful protest and repressive legislation, “Whenever there were mass protests […], new restrictive laws followed.”

The report provides us with some answers as to why the Russian Federation clamps down on human rights and fundamental freedoms. “Ultimately, it is about integrating civil society into the vertical of power.”

Silencing civil society puts Russia’s authorities in a position in which they deem themselves free from answering to citizens. In addition, with its clampdown on human rights and fundamental freedoms, the Russian Federation has helped prepare the ground for its war of aggression against Ukraine. The report outlines Russian government thinking: “restrictive measures are considered necessary in order not to be disturbed during the preparation for war or after it has started. This explains the wave of repressive measures in Russia immediately before, but, above all, after 24 February 2022.”

Mr Chair, the Russian government and administration not only excessively limit human rights and fundamental freedoms, but actively work to their detriment to propagate the war. In that context, the report analyses speeches delivered by President Putin that call civil society the “fifth column” and de-humanise those considered to be enemies, thus revealing “an attitude of deep-seated hatred”.

The report also cites several astonishing examples of pressure in opinion formation, for instance towards students and artists, and of excessive violence against critical civil society activists, journalists, and other media actors, such as the case of Grigory Yudin, political scientist and sociologist. “On 24 February 2022, he was arrested during an anti-war protest in Moscow and severely beaten in a police van, until he lost consciousness. Many more cases have been documented by human rights organisations who claim that the degree of violence has considerably increased – many interviewees drew a parallel to the violent suppression of protest in Belarus.”

Not all violence is committed by state representatives, the report points out, but it goes on to state that “[t]he Russian State implicitly supports this development through its lack of protection and its ineffectiveness in freedom-of-speech related cases.”

Freedom of expression is also particularly affected by the war. “Especially the extension of espionage […] and therefore of “high treason” […] under […] the Criminal Code […] makes journalistic work during the ongoing war of the Russian Federation against Ukraine impossible.”

Importantly, the report sheds light on the specific ramifications for women and members of the LGBTQI+ community. For instance, the report describes gender-based violence against women protestors. Women “are in an especially vulnerable position, especially if they are detained alone. Sexualized violence is a relatively new phenomenon, more noticeable since February 2022.”

Mr Chair, colleagues, “repression on the inside and war on the outside are connected to each other as if in a communicating tube.” May this conclusion of the report be a lesson and warning to all of us. It is a timely reminder of one of the cornerstones of the 1975 Helsinki Final Act on the universal significance of human rights and fundamental freedoms, respect for which is an essential factor for the peace, justice and well-being. What is at stake is nothing less than the OSCE concept of comprehensive security. It is our common duty to properly defend the values and principles of this organization.

Once again, I offer our sincere thanks to Professor Nußberger.

Thank you.




UK government to set its own laws for its own people as Brexit Freedoms Bill introduced

  • UK government to end the special status of all retained EU law by 31 December 2023 under new Brexit Freedoms Bill introduced today
  • the Bill will enable the UK government to create regulations tailor-made to the UK’s own needs, cutting red tape and supporting businesses to invest, stimulating economic growth across the UK economy
  • Business Secretary Jacob Rees Mogg said: “The Brexit Freedoms Bill will remove needless bureaucracy that prevents businesses from investing and innovating in the UK, cementing our position as a world class place to start and grow a business”

All EU legislation will be amended, repealed, or replaced under the new Brexit Freedoms Bill introduced to Parliament today (Thursday 22 September), which will end the special legal status of all retained EU law by 2023, and give the UK the opportunity to develop new laws that best fit the needs of the country and grow the economy.

Many EU laws kept on after Brexit were agreed as part of a complex compromise between 28 different EU member states and were simply duplicated into the UK’s statute books, often not considering the UK’s own priorities or objectives.

The Brexit Freedoms Bill will enable the UK government to remove years of burdensome EU regulation in favour of a more agile, home-grown regulatory approach that benefits people and businesses across the UK. By removing these legal restraints and replacing them with what works for the UK, our businesses and economy can innovate and grow to new levels.

As a result of the bill, around £1 billion worth of red tape will be removed, giving businesses the confidence to invest and create jobs, while transforming the UK into one of the best regulated economies in the world.

The Bill is an integral step in the Prime Minister’s mission to unlock growth and will support Britain’s most entrepreneurial businesses to capitalise on the UK’s global leadership in areas like clean energy technologies, life sciences and digital services. This in turn will help to spur real-life benefits and increased living standards for the British public – from advanced healthcare treatments and faster infrastructure projects to increased environmental standards such as cleaner air.

Business Secretary, Jacob Rees Mogg said:

Now that the UK has regained its independence, we have a fantastic opportunity to do away with outdated and burdensome EU laws, and to bring forward our own regulations that are tailor-made to our country’s needs.

The Brexit Freedoms Bill will remove needless bureaucracy that prevents businesses from investing and innovating in the UK, cementing our position as a world class place to start and grow a business.

By giving the government new secondary powers to amend, replace or repeal any retained EU law, the amount of parliamentary time that is required has been dramatically reduced. They will also make it easier for departments to create agile regulation that keeps pace with technological change.

The Bill will end the special status retained EU law has on the UK statute books by 2023, meaning domestic law will be reinstated as the highest form of law on the UK’s statute book again. The most burdensome and outdated EU laws can then be amended, repealed, or replaced.

Consistent with the government’s approach to Brexit policy, the Bill will apply to the entirety of the UK, enabling joint working between the UK government and devolved administrations, and ensuring everyone can access the benefits of Brexit to stimulate economic growth, innovation, and job creation across the Union.

The government has engaged, and will continue to work, with a range of organisations and stakeholders to ensure the best possible outcome when reforming retained EU law. This ensures the UK’s high standards in areas such as workers’ rights and the environment are kept, also giving the UK the opportunity to be bolder and go further than the EU in these areas.

The Bill will maintain all commitments to the international obligations required of the UK. The Bill’s introduction will build on the significant progress the government has made since delivering Brexit on 31 January 2020, which include:

  • ending free movement and taking back control of our borders – replacing freedom of movement with a points-based immigration system and making it easier to kick out foreign criminals
  • restoring democratic control over our law making – giving the power to make and scrutinise the laws that apply to us back to our Parliament and the devolved legislatures so that they are now made in Belfast, Cardiff, Edinburgh, and London, not Brussels
  • restoring the UK Supreme Court as the final arbiter of the law that applies to the UK – UK judges, sitting in UK courts, now determine all the law of the land in the UK
  • securing the vaccine rollout – streamlining procurement processes and avoiding cumbersome EU bureaucracy to deliver the fastest vaccine rollout anywhere in Europe last year (2021)
  • striking new free trade deals – with over 70 countries including landmark deals with Australia and New Zealand.
  • capitalising on tax freedoms – including getting rid of the VAT on women’s sanitary products (the ‘Tampon Tax’), introducing VAT free installations of energy-efficient materials, working on replacing complex EU alcohol duty rates, and forging ahead to remove the ban on selling in pounds and ounces
  • replacing the Common Agricultural Policy – with a system in England that will enable better environmental outcomes
  • taking back control of our territorial waters – managing our fisheries and precious marine environment in a more sustainable way
  • making it tougher for EU criminals to enter the UK – EU nationals sentenced to a year or more in jail will now be refused entry to the UK
  • restoring fair access to our welfare system – ending the preferential treatment of EU migrants over non-EU migrants, ensuring that wherever people are born, those who choose to make the UK their home pay into a system for a reasonable period of time before they can access the benefits of it
  • giving UK regulators the ability and resources to make sovereign decisions about globally significant mergers – decisions about globally significant mergers and acquisitions are now made by the UK’s Competition and Markets Authority, giving it the ability to block or remedy mergers it considers will harm UK consumers
  • establishing a new subsidy control regime – We passed the Subsidy Control Act, which allows us to establish our own subsidy regime to support British businesses and innovation. We will have greater freedom to design subsidies which deliver both local and national objectives