Further increases to HMRC late payment Interest rates
Following the latest increase to the Bank of England’s base rate, HMRC has announced an across the board increase to its late payment interest rates. The new rates took effect from Tuesday 11 July 2023.
The current rate is set at the base rate of 5% plus an additional 2.5%, resulting in an interest rate of 7.5% per annum. This rate will be levied on late payments of;
- Income Tax
- Capital Gains Tax
- Corporation Tax
- VAT
Please note, interest will start accruing from the day after the tax was due until the date the payment is settled in full. As such, it is strongly advised that systems and processes are put in place to pay taxes on time in order to prevent interest charges accruing.
If you require some assistance in this respect, please speak to a member of the tax team today!