Late payment interest rates

HMRC late payment interest rates

Following the Bank of England’s decision to raise the base interest rate to 0.75%, HMRC has increased the rate of interest on overdue tax payments.

From 21 August 2018 HMRC will apply interest of 3.25% to late tax payments. Correspondingly, the repayment interest rate received from HMRC remains at 0.5%.

This rate applies to the main taxes including Income Tax, National Insurance Contributions, Capital Gain Tax, Stamp Duty Land Tax, Corporation Tax and Inheritance Tax.

Interest charged on underpaid quarterly instalment payments increased to 1.75% from 13.8.18.

If you would like help with calculating your tax payments or optimising your tax position, please contact [email protected] or call 01527 558539.

Further information about our services can be found here and under the ICAEW’s Business Advice Service we offer a free, no obligation hour’s appointment with one of our professionals. Please get in touch to arrange your session. [email protected]

For further information about HMRC’s late payment interest rates, see HMRC’s website.

interest rates