HMRC raises late payment rates

HMRC raises late payment rates

Higher interest rates for late payment of taxes

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%.

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