HMRC raises late payment rates

Taxpayers who do not pay their taxes and national insurance contributions on
time will be hit with higher interest payments from 6 September.

HM Revenue & Customs has also increased the rates of interest paid on
overpaid taxes.

The main interest rate changes include:

· Late payment of income tax, national insurance contributions, capital gains
tax, stamp duties – rate goes up from 6.5% to 7.5%.

· The rate of interest on overpaid income tax, national insurance
contributions, capital gains tax, stamp duty, stamp duty land tax and stamp duty
reserve tax (repayment supplement) changes from 2.25% to 3%.

· The rate of interest for late payment or repayments of inheritance tax
changes from 3% to 4%.

· The rate of interest on unpaid corporation tax for accounting periods
ending on or after 1 July 1999 (other than underpaid CT instalments) changes
from 6.5% to 7.5%.

· The rate of interest on overpaid corporation tax for accounting periods
ending after 1 July 1999, in respect of periods after the normal due date,
changes from 3% to 4%.