Following the most recent announcement by the Bank of England to raise the base rate from 0.75% to 1%, its highest level in 13 years, HMRC have also announced that the late payment interest rate will rise to 3.5% from 24 May 2022.

The rate, which applies to late payments of the main taxes and duties administered by HMRC, is tracked at 2.5% above the base rate. It was increased to 3.25% in March 2022.

Useful guides on this topic

Penalties: Late 
What penalties are charged when tax is paid late? 

Penalties: Late Payment MTD
Penalties for late payment of tax under Making Tax Digital for VAT and Income Tax.

External link

HMRC interest rates for late and early payments

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