HMRC increases interest on Late Paid tax
7th October 2022
HMRC will raise interest rates on tax debt from 11 October following the 0.5% increase in the base rate.
This means that the late payment interest rate will increase to 4.75% from 11 October 2022. The rate last increased to 4.25% on 23 August. This is the highest rate since the height of the financial crisis in January 2009.
Late payment interest is payable on late tax bills covering income tax, national insurance contributions (NICs), capital gains tax (CGT), Stamp Duty Land Tax (SDLT) and stamp duty reserve tax (SDRT). The corporation tax self assessment rate also increases to 4.75%.
The repayment interest rate will also be increased from the current 0.75% repayment interest rate to 1.25%.
Disclaimer - All information in this post was correct at time of writing.
