HMRC has raised the interest rates charged on late tax payments by 0.5%, up to 4.25%, in a change that came into force on Tuesday, 23rd August.
HMRC links its interest rates on late payment charges with the Bank of England’s base rate, which increased from 1.25% to 1.75% in August. 📈
Taxes include income tax, national insurance contributions, capital gains tax, stamp duty and inheritance tax.
The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are:
- Late payment interest rate — 4.25% from 23rd August 2022.
- Repayment interest rate — 0.75% from 23rd August 2022.
The repayment interest rate only applies if you pay up on time which will be 3.5% less than the late repayment fee.
Please get in touch with our team today if you are unsure about your tax return, the figures and the dates.
We will guide you through the entire process.