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Following the Bank of England’s recent announcement increasing the base rate, HMRC have announced that their late payment interest rate will also increase by 0.25%, to 3.75%, from 5 July 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 3.5% in May 2022.

Useful guides on this topic

Penalties: Late Payment
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 late payment interest rates to be revised after Bank of England increases base rate


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